China stocks and futures rise, bears retreat on Beijing firepower
* CSI300 +1.56 pct, SSEC +1.37 pct
SHANGHAI, July 17 (Reuters) - China stocks rose on Friday as traders said the government resumed intervention in the market to scare off bears.
Investors are closely watching futures markets in particular, as the contract for the CSI300 index future matures by market close.
Market insiders told Reuters that contract, and the futures market in general, has become a battleground between regulators trying to push up the market, and bears trying to avoid taking a loss on short-positions.
The CSI300 index rose 1.6 percent, to 4,059.87 points by midday, while the Shanghai Composite Index gained 1.4 percent, to 3,875.50 points. Both look set to post modest weekly gains.
Beijing appeared to win the morning round, with the futures contract rising to meet the CSI300 index level, instead of the index falling to meet the futures price as on Wednesday, implying those that pushed futures down sharply earlier in the week are facing a loss barring a crash in the afternoon session.
However, some believe they simply rolled over their positions to next month.
"Many investors have already extended their future contracts to next month, so today's futures settlement did not lead the index to fall," said Zhang Qi, stock analyst at Haitong Securities in Shanghai.
"Also we suspected the 'national team' has continued buying shares today to prevent the market from falling." Continuación...