SHANGHAI Oct 18 China stocks rallied on
Tuesday, as Shanghai's U.S. dollar-denominated B shares
stabilised following the previous day's sell-off, and as
investors shifted their focus to Chinese economic data this
The blue-chip CSI300 index rose 1.3 percent, to
3,321.33, while the Shanghai Composite Index gained 1.4
percent to 3,083.88 points.
The market was dragged lower on Monday by a sudden
late-afternoon slump in the B-share index amid yuan
depreciation fears, but the index bounced more than 2 percent on
Tuesday as investors judged the mysterious sell-off was
"The B-share market has very poor liquidity, so is prone to
high volatility," said Chang Chengwei, analyst at Hengtai
"Since yesterday's market fall was driven mainly by fear,
rather than fundamentals, some investors saw this as a chance to
buy shares at lower prices."
All eyes are on China's economic data to be released this
week, including GDP, new loans, money supply and retail sales,
which investors hope will paint a clearer picture of the
country's economic health.
Most sectors rose, with infrastructure and
industrial stocks leading the gains.
China Railway shot up as much as 10 percent,
while China Communications Construction and China
Railway Construction both surged more than 8 percent
at one point.
(Reporting by the Shanghai Newsroom; Editing by Jacqueline