Chinese stocks surge as composite Index rises 5.76 percent

World Today

A Chinese investor uses a magnifying glass to look at his mobile phone screen as he monitors stock prices at a brokerage house in Beijing, China, Thursday, July 9, 2015. Asian stock markets continued to react on Thursday as the Chinese government took measures aimed at stabilizing the market. (AP Photo/Ng Han Guan)

China’s stocks saw a surge on Thursday, as the benchmark Shanghai Composite Index rose 5.76 percent to finish at 3,709.33 points while the Shenzhen Component Index gained 4.25 percent to close at 11,510.34 points.

The ChiNext Index, tracking China’s Nasdaq-style board of growth enterprises, rose 3.03 percent to end at 2,435.76 points.

This came after the government’s fresh efforts to stem the stock market slide, as the key Shanghai index shedding nearly one third from its June peak.

On Thursday morning, the government unveiled a new batch of supportive policies to arrest the further slump of the market, which has been in a downward spiral for more than three weeks.

China’s securities watchdog announced on Thursday that China Securities Finance Corporation Limited (CSF), the national margin trading service provider, will provide liquidity to apply for the purchase of public funds.

China’s central bank said on Thursday that it will continue to support the liquidity needs of the CSF to stabilize the market.

Dan McClory, Head of China and West Coast Investment Banking at Burnham Securities, elaborates on the measures taken and what sort of outcome could be expected.

Chinese stocks surge as composite Index rises 5.76 percent

China's stocks saw a surge on Thursday, as the benchmark Shanghai Composite Index rose 5.76 percent to finish at 3,709.33 points while the Shenzhen Component Index gained 4.25 percent to close at 11,510.34 points. Dan McClory, Head of China and West Coast Investment Banking at Burnham Securities, elaborates on the measures taken and what sort of outcome could be expected.

Story by CCTV News