REFILE-China stocks rise the most in 4 months on reform hopes
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By Samuel Shen and Pete Sweeney
SHANGHAI May 19 (Reuters) - China stocks jumped over 3 percent on Tuesday, their biggest one-day gain in four months, with financial shares leading the charge after Beijing published guidelines for economic reform that prioritise further opening of the country's capital market and the restructuring of state enterprises.
The guidelines, which target areas including the Shenzhen-Hong Kong stock connect, the initial public offering (IPO) system and yuan globalisation, revived investor interest in blue-chip stocks, said Tian Weidong, analyst at Kaiyuan Securities in Xi'an.
"You need a vibrant stock market to push forward economic reforms, whether it's about asset securitisation or industry consolidation," he said. "With such a policy backdrop, investors are emboldened to stay in the market."
The rally off one-week lows was also fuelled by new money inflows. In April alone, China's mutual fund assets jumped nearly one fifth from a month earlier, to record 6.2 trillion yuan ($999.27 billion), helped mainly by newly-launched equity funds.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 3.4 percent to 4,731.22 points, while the Shanghai Composite Index gained 3.2 percent to 4,417.55.
Investors' focus switched back to blue chips, with banking and infrastructure stocks rising sharply while the start-up board ChiNext underperformed.
Investors also were encouraged by news that Jiangsu province successfully auctioned 52.2 billion yuan ($8.41 billion) of municipal bonds on Monday, becoming the first Chinese province to issue such instruments as part of China's debt-to-municipal bond scheme. Continuación...