Shares rebound as Chinese central bank's confident of keeping yuan stable
Shanghai stocks rebounded today after investors were cheered by China's central bank's confidence that it would keep the yuan stable.
The Shanghai Composite Index rose by 0.41 percent to close at 2,786.89 points as it reversed its sharp drop in the morning session.
Yi Gang, governor of the People's Bank of China, said that the central bank was closely watching the fluctuations in the foreign exchange market. He expressed optimism that China has "ample policy tools to maintain the yuan's exchange rate basically stable at a reasonable and balanced level."
Stocks of national defense and military companies led the gains, with AECC Aero Science and Technology Co and Avic Aviation High-Technology Co both surging by the daily limit of 10 percent.
Computer shares such as Hunan Copote Science and Technology Co, Suzhou Chunqiu Electronic Technology Co and Shanghai Wondertek Software Co all jumped by the maximum 10 percent cap.