China’s stocks rose, with the benchmark index for mainland companies in Hong Kong surging the most since December 2011, after the government pledged to ease the one-child policy and boost private investment as part of the biggest package of economic reforms since the 1990s.
Bloomberg News reported that Citic Securities Company and China Life Insurance Company rallied more than eight per cent in Hong Kong and Shanghai to lead gains for financial shares. Baby formula maker Zhejiang Beingmate Technology Industry & Trade Company jumped 3.6 per cent. The yuan traded within 0.2 per cent of a 20-year high, while the 10-year bond yield rose to the highest level since 2007 as China said it would accelerate steps toward currency convertibility and a freeing-up of interest rates.
The Hang Seng China Enterprises Index climbed 5.7 per cent to 11,307.33 at the close in Hong Kong, while the Shanghai Composite Index rose 2.9 per cent to 2,197.22. China pledged to allow more private investment in state-controlled industries while couples can have two children if either parent is an only child, according to a Communist Party decision published by the official Xinhua News Agency on November 15.
