China Market rebounds on bargain buying

The Mainland China stock market rebounded on Wednesday, 06 January 2016, spurred by bottom fishing following steep losses in previous two sessions. The bargain buying spurred by the China's central bank injection of 130 billion yuan in cheap loans in a bid to stabilise the nation's rocky financial system and an extension of a selling ban for major investors and of direct intervention by state-controlled funds to prop up the market. The indexes were up despite data released after the market opened showing that growth in China's services sector slowed to its weakest in 17 months in December, which came two days after figures showing factory activity shrank for a 10th straight month. All sectors rebounded, with resources and energy surging more than 5%. The Shanghai Composite Index rebounded 2.25%, or 74.13 points, to close at 3361.84. The Shenzhen Composite Index, which tracks stocks on China's second exchange, surged 2.61%, or 54.18 points, to close at 2133.96. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 2.14%, or 51.64 points, to close at 2468.37.

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