China stocks rose for a second day amid speculation the government has resumed its intervention in the equities market.
The Shanghai Composite Index climbed 1.4 percent to 3,125.45 at 9:34 a.m., paring this week’s loss to 11 percent. The benchmark index rallied 5.3 percent on Thursday with all of the gains coming in the last 45 minutes of trading. PetroChina Co. led a rally for energy producers after crude futures soared 10 percent in New York on Thursday. The offshore yuan rose after the central bank boosted the currency’s reference rate by the most in five months.
Policy makers want to stabilize equities before a Sept. 3 military parade celebrating the 70th anniversary of the World War II victory over Japan, said two of the people, who asked not to be identified because the move wasn’t publicly announced. The shift followed the absence of state buying earlier this week.
The Shanghai Composite has fallen 40 percent since the June peak amid concern the government has scaled back efforts to prop up equities and the deepning economic slowdown will hurt corporate profits. Data on Friday showed industrial companies’ profits slid for a second month, dropping 2.9 percent in July.
Source : Bloomberg