BEIJING, April 29 Mainland stocks surged in the
final hour of trading on Tuesday, with the Shanghai Composite
Index climbing one percent over the final hour of trade,
leaving the index up 0.8 percent at the close.
The gains spelled the end of a four-day losing streak that
had seen the SSEC dropping below 2,000 points shortly after
It also had a knock-on affect on the Hong Kong market, with
the HSI gaining more than one percent in the final hour before
Analysts and fund managers contacted by Reuters said it was
very possible the sudden jump suggested asset management
companies had stepped in to support the index as it neared the
2,000 line, seen widely as a "bottom line" for value, below
which the authorities are reluctant to see it fall.
"It is not impossible that we are seeing some protection"
said Du Changchun, an analyst at Northeastern Securities in
"A rally also makes sense, it's quite unlikely the index
would continue below 2,000."
At 1:40pm the index fell below the 2,000 mark, 15 minutes
before the rebound began. Twenty minutes later the index shot up
0.8 percent in the space of ten minutes.
Similar patterns have occurred in recent months. On March 20
the index dipped below 2,000 for two hours, before jumping 2.7
percent in the next eighty minutes.
Investor confidence had suffered a blow last week after the
securities regulator published the listing prospectuses of 144
new firms in the space of just 10 days following a two month
listing hiaitus, in a move that surprised investors and industry
The resumption of listings worries investors, who fear that
more companies entering the market will siphon off funds from
existing firms, bringing overall values down.
(Reporting By Natalie Thomas; Editing by Michael Urquhart)