China stocks rebound; soothed by regulator remarks and GDP
SHANGHAI Jan 20 (Reuters) - China stocks rebounded on Tuesday in a day of volatile trading after the Chinese regulator denied it had intentionally sought to suppress the market's rally.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.2 percent, to 3,396.22, while the Shanghai Composite Index gained 1.9 percent, to 3,173.05 points.
The market also took some comfort from China's fourth-quarter growth data, which came in better than expected, but that had only a marginal impact on stocks.
"The CSRC's announcement has slightly relieved investor sentiment but it's impossible for investors to immediately regain confidence given that the problem of margin trading still exists," said Zhang Qi, an analyst at Haitong Securities in Shanghai.
"I'm expecting to see wide volatility up until Chinese New Year."
Chinese stocks suffered their biggest one-day percentage drop since June 2008 on Monday, dragged down by financials as the authorities rolled out new measures to curb excession speculation.
Among the most active stocks in Shanghai were Bank Of China , down 0.7 percent to 4.45 yuan; CITIC, down 9.8 percent to 26.71 yuan and Agricultural Bank of China , up 0.6 percent to 3.57 yuan.
In Shenzhen, Guosen Securities, up 8.8 percent to 23.18 yuan; BOE Technology, up 3.0 percent to 3.10 yuan and VANKE, up 1.5 percent to 12.35 yuan were among the most actively traded.3,396.22
Foreign investment flowing into Shanghai from Hong Kong through the mutual market access pilot programme took up 2.42 billion yuan of the 13 billion yuan daily quota. Continuación...