China stocks rebound as officials pledge market support
China stocks bounced back on Friday from the earlier slump as financial officials pledged support to calm the markets.
The benchmark Shanghai Composite Index surged 2.58 percent to close at 2,550.47 points. The smaller Shenzhen Component Index also jumped 2.79 percent to 7,387.74 points and the blue-chip CSI 300 index ended 2.97 percent higher at 3,134.95 points.
Market bubbles have sharply contracted, the quality of listed firms is improving, and valuations are at historic lows, he said.
Citing opinions of international investors and domestic analysts on the Chinese stock market, Chinese Vice Premier Liu He said on Friday that China is becoming the most valuable market for investment, from the perspective of global asset allocation.
"The corrections and sell-offs on the stock market are creating good investment opportunities for long-term and healthy development," Liu said.
The central bank actively encourages some local governments' policies to support the liquidity of businesses based there, and is promoting plans to support equity and bond financing of private enterprises, Yi Gang, chairman of the People's Bank of China said.
Guo Shuqing, head of China's new regulator for the banking and insurance sectors, also said today that they will take further action to push the financial market back on the normal and healthy development track.
All sectors of the A-share market posted gains. Shares of over 50 companies surged by the daily limit of 10 percent. Financial shares and the computer sector led the rise.
For the week, however, the Shanghai Composite Index posted a weekly loss of 2.17 percent.