China stocks rebound after circuit breaker halted; Hong Kong also up
China stocks swung wildly on Friday before ending the morning session up more than 2 percent
Shanghai: China stocks swung wildly on Friday before ending the morning session up more than 2 percent, after regulators suspended a newly-minted circuit breaker mechanism to calm investor sentiment.
Hong Kong stocks also gained on signs of stabilisation in markets on the mainland.
The CSI300 index rose 2.8 percent, to 3,384.99 points at the end of the morning session, while the Shanghai Composite Index gained 2.4 percent, to 3,199.56 points.
Late on Thursday, China`s securities regulator announced a suspension in circuit breakers after just four days operating the mechanism, saying it had not worked as anticipated in actual situations and was doing more bad than good.
Analysts said the move injected life into the market.
"The market is back to normal. Investors can buy and sell as they wish," said Tian Weidong, analyst at Kaiyuan Securities.
"Under the circuit breaker mechanism, the market was suffocated."
China stocks rose across the board, with the resources sector surging more than 6 percent and energy shares jumping over 4 percent.
Analysts attributed the rise in those sectors to Beijing`s efforts to reduce excess capacity, which investors believe will lead to industry consolidation and benefit major listed players.
In Hong Kong, the Hang Seng index added 1.1 percent, to 20,561.25 points, while the Hong Kong China Enterprises Index gained 1.7 percent, to 8,904.74.