(Bloomberg) -- Chinese stocks rebounded from their worst week of the year amid signs an economic recovery was firming, with large caps climbing and the country’s offshore equities poised to enter a bull market. Sovereign bonds fell.
The SSE (LON:SSE) 50 Index of some of China’s biggest stocks rose 2.2 percent as of 9:56 a.m. in Shanghai. New China Life Insurance Co. climbed 5.9 percent, in line for the biggest gain since Feb. 25, as insurers and banks advanced. The Hang Seng China Enterprises Index advanced 1.7 percent to extend its gain from a low in early January to 20 percent.
Investors were content to take profits last week from the best-performing stocks in the world in 2019. After trading ended for the week, the People’s Bank of China released credit data that suggested growth exceeded all estimates in March. Risk sentiment is also being boosted by signs the U.S. and China are nearing a trade deal after Treasury Secretary Steven Mnuchin said the U.S. is open to facing “repercussions” if it doesn’t live up to its commitments.
"The credit data lifted expectations on market liquidity and economic fundamentals," said Wang Jianhui, a Beijing-based analyst with Capital Securities Co. "It provided an excuse for investors who wanted to bottom fish stocks after last week’s correction."
The yield on China’s 10-year government bonds rose 4 basis points to 3.40 percent, the highest since December. The yield has climbed 12 basis points in the past two sessions.
To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at twang234@bloomberg.net
To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Philip Glamann, Ron Harui
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