SHANGHAI, Jan 20 (Reuters): Chinese shares rebounded on Tuesday from
their biggest tumble since the global financial crisis the day before,
after the stock regulator denied speculation it had intentionally sought
to suppress the market's rally.
The market also took some comfort from China's fourth-quarter growth data, which came in better than expected, but that had only a marginal impact on stocks.
Analysts said the focus of investors remained on capital flows rather than economic fundamentals.
"The GDP data looks to have had some positive impact but the key focus will still be capital flows," said Wang Weijun, an analyst at Zheshang Securities in Shanghai.
He said the market had risen sharply over the past few months and was poised for a correction. China's key share indexes rose 40 per cent in the fourth quarter.
The CSI300 index ended 1.2 per cent up, at 3,396.22 points on Tuesday, while the Shanghai Composite Index gained 1.9 per cent, to 3,173.05 points.
Over in Hong Kong, the Hang Seng index added 0.9 per cent, to 23,951.16 points, while the Hong Kong China Enterprises Index gained 2.3 per cent, to 11,741.78.
The CSI300 and Shanghai indexes both fell 7.7 per cent on Monday, their biggest one-day fall since June 2008 after regulators cracked down on credit products blamed for fuelling speculation in the stock market over the past few months.
The market also took some comfort from China's fourth-quarter growth data, which came in better than expected, but that had only a marginal impact on stocks.
Analysts said the focus of investors remained on capital flows rather than economic fundamentals.
"The GDP data looks to have had some positive impact but the key focus will still be capital flows," said Wang Weijun, an analyst at Zheshang Securities in Shanghai.
He said the market had risen sharply over the past few months and was poised for a correction. China's key share indexes rose 40 per cent in the fourth quarter.
The CSI300 index ended 1.2 per cent up, at 3,396.22 points on Tuesday, while the Shanghai Composite Index gained 1.9 per cent, to 3,173.05 points.
Over in Hong Kong, the Hang Seng index added 0.9 per cent, to 23,951.16 points, while the Hong Kong China Enterprises Index gained 2.3 per cent, to 11,741.78.
The CSI300 and Shanghai indexes both fell 7.7 per cent on Monday, their biggest one-day fall since June 2008 after regulators cracked down on credit products blamed for fuelling speculation in the stock market over the past few months.
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