China’s stocks rose, extending a weekly gain, on speculation the new securities regulator chairman will take steps to boost the world’s second-largest equity market.

The Shanghai Composite Index advanced 1.2 percent to 2,894.89 at 9:31 a.m. local time, led by commodity producers and financial companies. The benchmark measure climbed 3.5 percent last week, the most in two months. Developers gained after the government said it will cut taxes on home transactions. The Hang Seng China Enterprises Index climbed to a one-month high.

Liu Shiyu is assuming oversight of the world’s second-largest stock market in the wake of last summer’s slump that saw Xiao Gang criticized for mismanagement. Liu was previously chairman of Agricultural Bank of China Ltd. and was a deputy governor at the People’s Bank of China before that. The reshuffle comes before the nation’s Communist leaders are due to meet next week to set out a new five-year economic plan.

Source: Bloomberg