China stocks swung wildly on Friday before ending the morning session up more than 2 per cent, after regulators suspended a newly-minted circuit breaker mechanism to calm investor sentiment.
Thomson Reuters | Last Updated: January 08, 2016 10:13 (IST) Thomson Reuters
Shanghai: China stocks swung wildly on Friday before ending the morning session up more than 2 per cent, 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 per cent and energy shares jumping over 4 per cent.
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 per cent, to 20,561.25 points, while the Hong Kong China Enterprises Index gained 1.7 per cent, to 8,904.74.