China stocks rally as Beijing intensifies efforts to stem rout

State-related bodies said to have bought about 13.2b of onshore Chinese shares

SHANGHAI - Chinese equities rallied on Feb 6 as Beijing stepped up its efforts to stem a rout with a string of policy announcements, including a state fund's vow to boost stock purchases.

The onshore benchmark CSI 300 Index climbed as much as 2.8 per cent, offering a reprieve to investors who have had to grapple with wild market swings over the past two sessions. The Hang Seng China Enterprises Index of major Chinese companies listed in Hong Kong jumped more than 4 per cent.

Hopes are also building for more concerted efforts to boost shares as regulators plan to brief President Xi Jinping on the markets as soon as Feb 6.

The latest move comes as policymakers struggle to end a three-year rout in the stock market that has erased some US$7 trillion (S$9.4 trillion) of value and dented confidence in the world's second-largest economy.

Stocks started the day higher as Central Huijin Investment, the unit that holds Chinese government stakes in big financial institutions, said it will continue to increase holdings of exchange-traded funds. That was soon followed by the securities regulator pledging to make greater efforts in guiding long-term funds to enter the market.