“China’s stocks rose the most in a month after the head of the securities regulator said the nation can increase by 10 times the size of two investment programs that allow foreign investors to buy securities.
China can raise quotas to allow foreigners as well as offshore yuan holders in Hong Kong to buy stocks and bonds in the mainland, said Guo Shuqing, Chairman of the China Securities Regulatory Commission. Citic Securities Co. led a rally for brokerages on the prospect that increased demand for equities would boost profit. Hebei Sailhero Environmental Protection High-tech Co. (300137) jumped 10 percent and Tasly Pharmaceutical Group Co. surged to a record high as worsening pollution in Beijing may spur demand for health care and environmental protection.
The Shanghai Composite Index (SHCOMP) rose 3.1 percent to 2,311.74 at the close, the biggest advance since Dec. 14. The CSI 300 Index (SHSZ300) jumped 3.8 percent to 2,577.73, as gauges of financial, technology and health-care companies jumped more than 4 percent. TheHang Seng China Enterprises Index (HSCEI) added 1.3 percent.
“Guo’s comments are very significant as it shows the government is trying to get bullish on stocks and it’s a policy signal as well,” Hao Hong, Hong Kong-based managing director of research at Bank of Communications Co., said in a phone interview. China is trying to improve the quality of its economic growth and investing in environmental technology and health care fit into this plan, he said.
The Shanghai measure has risen 18 percent from an almost four-year low on Dec. 3, while the CSI 300 climbed 22 percent on signs economic growth is picking up. Government reports last week showed exports expanding more than economists forecast, while inflation accelerated….”
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