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China stocks climb as liquidity worries ease, reform hopes rise
December 21, 2016 / 7:17 AM / a year ago

China stocks climb as liquidity worries ease, reform hopes rise

SHANGHAI, Dec 21 (Reuters) - China stocks rebounded on Wednesday, as fears of a liquidity squeeze in the banking system subsided after risks from a bond scandal appeared contained, and on a pledge to deepen reforms in state-owned sectors.

The blue-chip CSI300 index rose 0.9 percent, to 3,338.54 points, while the Shanghai Composite Index gained 1.1 percent to 3,137.43 points, both snapping a two-session losing streak.

Investors relaxed after Sealand Securities, a brokerage embroiled in a scandal, said on Wednesday it would take responsibility for forged bond agreements.

Sealand’s commitment eased concerns of a liquidity squeeze, triggering a sharp rebound in bond prices.

The State-owned Assets Supervision and Administration Commission said China would vigorously push forward mixed-ownership reforms in sectors including telecommunications, aviation and defence.

Most sectors gained, led by infrastructure and transport plays, while properties and banks steadied.

China United Network Communications closed 3.8 percent higher at a 16-month high. The stock has gained more than 75 percent since the end of September. (Reporting by Luoyan Liu and John Ruwitch; Editing by Richard Borsuk)

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