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Business / Markets

Stocks rebound after worse week in seven years

By Dai Tian (chinadaily.com.cn) Updated: 2015-06-23 16:09

Stocks rebounded amid volatility on Tuesday after crashing for their steepest weekly loss since the global financial crisis.

The benchmark Shanghai Composite Index climbed 2.2 percent to 4,576.49 points at the close after sinking more than 13 percent last week, while the Shenzhen Component Index closed at 16,045.99, up 2 percent.

Aerospace, railway infrastructure and transport companies led the gains on Tuesday. Aerospace Hi-tech Holding Group, Southern Airlines and China Eastern Airlines jumped by the daily limit of 10 percent.

CRRC Corp, the train maker behemoth formed after the merger of China North Railway and China South Railway, rose 6.7 percent, narrowing previous loss since its first trading day at the Shanghai bourse to 27 percent.

Financial sector rebounded, with New China Insurance and China Pacific Insurance gaining 6.4 and 5.8 percent respectively. China Merchants' Bank and Bank of Communications jumped more than 4.5 percent.

The Shanghai gauge plunged 13.3 percent last week amid concerns that the valuations lacked supporting fundamentals and a flood of new listings could lure away liquidity from existing equities.

The CSI 300 index advanced 3.2 percent to 4,786.09 points.

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