China Stocks End Higher in Sharp Rebound

SHANGHAI (Reuters) -
An investor walks past an electronic screen showing stock information at a brokerage house in Nanjing, Jiangsu province, China January 14, 2016. China's yuan currency slipped despite the efforts of the authorities on Thursday, as the gloom in global markets obscured signs that China's economy may not be weakening as fast as some investors had feared. REUTERS/China Daily ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS. CHINA OUT. NO COMMERCIAL OR EDITORIAL SALES IN CHINA.
An investor walks past an electronic screen showing stock information at a brokerage house in Nanjing, Jiangsu province, China, Thursday. (Reuters/China Daily)

China stocks rebounded roughly 2 percent on Thursday, as some investors bet that the lows hit during last summer’s rout would not be so easily breached.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.1 percent, to 3,221.57, while the Shanghai Composite Index gained 2.0 percent, to 3,007.65 points.

The SSEC bounced off its intraday low of 2,867.55, merely 17 points above its 2,850.71 August low, which is seen by many investors as a key psychological support level.

“This level is unlikely to be breached in the short term, as the market has dropped so much and so fast,” said Samuel Chien, a partner of Shanghai-based hedge fund manager BoomTrend Investment Management Co.

“It’s a level worth putting money in, for both the national team and investors,” to bet for a decent rebound, he said.

“But in the longer term, whether the level can hold really depends on economic situations, whether the yuan can remain stable, and how successful economic restructuring is.”

All main sectors rose, with Shenzhen’s start-up board ChiNext jumping 5.4 percent.