CORRECTION-MARKETS-GLOBAL/CHINA-OPEN China stocks rise early as Wall Street gains calm global contagion fears

Record ID: 142360

  • Title: CORRECTION-MARKETS-GLOBAL/CHINA-OPEN China stocks rise early as Wall Street gains calm global contagion fears
  • Date: 27th August 2015
  • Summary: SHANGHAI, CHINA (AUGUST 27, 2015) (REUTERS) HUANGPU RIVER WITH PEARL TOWER SHIP ON HUANGPU RIVER SHANGHAI BUND PEOPLE AT THE BUND INVESTORS INSIDE STOCK EXCHANGE STOCK INFORMATION ON SCREEN SCREEN SHOWING STOCK INFORMATION STOCK INFORMATION ON SCREEN INVESTOR INSIDE STOCK EXCHANGE STOCK INFORMATION ON SCREEN INVESTOR LOOKING AT SCREEN STOCK INFORMATION ON SCREEN (SOUNDBITE) (Mandarin) 65-YEAR-OLD INVESTOR, SURNAMED OU, SAYING: "China's stock market is still in a period of weakness. I won't invest in it unless it becomes a strong market and then only in this period when the Shanghai Composite Index is strong can you invest in it. China's market has dropped too much but has risen only a little and the system is not a standard one. Margin trading is only good for big investors. Retail investors follow and fall on bad days." STOCK INFORMATION ON SCREEN INVESTORS INSIDE STOCK EXCHANGE INVESTOR LOOKING AT SCREEN SCREEN SHOWING STOCK INFORMATION STOCK INFORMATION ON SCREEN HONG KONG, CHINA (AUGUST 27, 2015) (REUTERS) VARIOUS OF THE EXTERIOR OF THE EXCHANGE SQUARE FLAGS MARKETS FLOOR AT OPENING BELL ELECTRONIC BROAD SHOWING HANG SENG INDEX AT 21672.06 (+591.67, 2.80%) TRADER WORKING ELECTRONIC BROAD SHOWING STOCK CODES AND NAMES MARKETS FLOOR
  • Embargoed: 11th September 2015 13:00
  • Keywords:
  • Location: China
  • Country: China
  • Topics: General
  • Reuters ID: LVA63QRXFFKIJB0UTOH4MRCYXZJS
  • Aspect Ratio: 16:9
  • Story Text: China's major stock indexes rose on Thursday (August 27) as a strong rebound on Wall Street helped calm global markets after days of wild volatility.
    The CSI300 index rose 2.2 percent to 3,092.81 points by 0126 GMT, while the Shanghai Composite Index gained 1.7 percent to 2,978.03 points.
    China CSI300 stock index futures CIFc1 for September rose 4.1 percent, to 2,938.6, 154.21 points below the current value of the underlying index.
    Investors in Shanghai said the rally was good for long-term, big investors, but not necessarily for small-time investors like themselves.
    "China's stock market is still in a period of weakness. I won't invest in it unless it becomes a strong market and then only in this period when the Shanghai Composite Index is strong can you invest in it. China's market has dropped too much but has risen only a little and the system is not a standard one. Margin trading is only good for big investors. Retail investors follow and fall on bad days," said one investor, 65, surnamed Ou.
    The Hang Seng index .HSI in Hong Kong was up 3.2 percent, to 21,758.62 points.
    Ironically, U.S. stocks rallied on Wednesday on expectations that the Federal Reserve will hold off from hiking interest rates next month due to mounting global uncertainties, including China's sputtering economy and tumbling stock markets, the very factors that prompted heavy selling in the previous sessions.
    China stocks fell on Wednesday (August 26), taking their losses to over 20 percent in just five days, underscoring fragile investor confidence and deep doubt over whether the central bank's latest cuts in interest rates and reserve ratios on Tuesday (August 25) could stabilise the economy.
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