China’s stocks rose, following last week’s volatile trading, after data showed factory output stabilizing and speculation increased the government will do more to clean up local government finances.
Shenzhen Energy Group Co. and GD Power Development Co. rose more than 2 percent to pace gains among utilities. Reorient Group Ltd. surged 142 percent in Hong Kong after a private-equity fund backed by Jack Ma will buy a stake. An official factory gauge rose last month, while people familiar with the matter said the Ministry of Finance may set additional quota of 500 billion to 1 trillion yuan for local governments to swap debt into municipal bonds.
The Shanghai Composite Index climbed 1.7 percent to 4,688.41 at 10:06 a.m. local time. The index lost 1 percent last week as a 6.5 percent rout on Thursday ended a seven-day, 15 percent surge. The index is still up 126 percent over the past year, the biggest advance among major global benchmark indexes tracked by Bloomberg.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.