China stocks rocket 8% at open after weekend rescue moves

China stocks exploded higher on Monday after Beijing enacted an unprecedented series of policy moves to support the market over the weekend.
China stocks exploded higher on Monday after Beijing enacted an unprecedented series of policy moves to support the market over the weekend.PHOTO: EPA

SHANGHAI (REUTERS, BLOOMBERG) - China stocks exploded higher on Monday after Beijing enacted an unprecedented series of policy moves to support the market over the weekend.

The CSI300 index rose 7.7 per cent to 4,186.24 points by 0130 GMT, while the Shanghai Composite Index gained 7.0 per cent to 3,943.00.

China CSI300 stock index futures for July rose 6.7 per cent, to 4,228.6, 42.36 points above the current value of the underlying index.

Hong Kong's Hang Seng index added 0.7 per cent, to 26,238.72 points.

The Hong Kong China Enterprises Index gained 1.9 per cent, to 12,850.86.

Over the weekend, China suspended initial public offerings, while brokerages pledged to buy shares and the central bank said it would provide liquidity for margin trading.

"As often the case, it is hard to tell if the fresh measures will help," Bernard Aw, a strategist at IG Asia Pte. said in Singapore. "However, this may just work if investors believe that the authorities and industry will just come out with stronger measures should the current batch fall short again."

The weekend announcements come as the government battles to restore faith among the nation's 90 million individual investors after a slew of measures by regulators, including a pledge to investigate market manipulation, failed to stem declines.