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Monday, 12 May 2014

China Stocks Rally on Reform Plan

Shares in China rallied Monday as investors cheered Beijing’s new blueprint for capital-market overhauls aimed at boosting regulatory transparency and widening market access.


The benchmark Shanghai Composite Index ended up 2.1% at 2052.87, its biggest daily percentage-point rise since Mar. 21, when it added 2.7%. The index has lost a total of 3% since the start of the year, following a decline of 6.8% for the whole of last year.


The State Council, China’s cabinet, on Friday unveiled a series of guiding principles for reforming the country’s financial markets. In a broad statement filled with ambitious goals and generalizations, the authorities pledged to establish a “multi-tier” capital market by 2020, encourage mixed corporate ownership and overhaul the nation’s system of initial public offerings, where large , state-run companies often receive preference in winning listing approvals at the expense of smaller, private businesses.


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Shen Hong, Wall Street Journal via CHINA US Focus http://ift.tt/1qwvD45

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