China stocks rebound on freed-up IPO liquidity; Hong Kong up

miércoles 24 de junio de 2015 00:50 GYT
 

* CSI300 +0.6 pct; SSEC +0.9 pct; HSI +0.2 pct

* China market stabilises, aided by money unlocked from IPOs

* Highly-leveraged punters have been wiped out - analysts

SHANGHAI, June 24 (Reuters) - China stocks extended gains on Wednesday, aided by liquidity unlocked from recent IPOs, as some investors took advantage of last week's market collapse to buy relatively cheap shares.

A stabilising mainland market benefits Hong Kong stocks, which were firmer, with the rise also underpinned by buoyant global markets on hopes that Greece will soon reach a deal with its creditors to avoid a debt default.

China's key CSI300 Index rose 0.6 percent by midday, while the Shanghai Composite Index gained 0.9 percent.

In Hong Kong, the Hang Seng index was up 0.2 percent while the Hong Kong China Enterprises Index ended the morning session 0.6 percent higher.

Hong Hao, chief strategist with BOCOM International, said that last week's 13 percent slump in China stocks had wiped out excessively-leveraged punters in the market, setting the stage for healthier rises.

"Those who bet with the highest level of leverage should be out of the game, and the market is stabilising. The market uptrend is not changed," Hong said.   Continuación...