China is becoming the market with the most investment value

Shares listed in China on October 19th rallied the most in over two months after the country’s vice-premier, central bank governor and various financial regulatory institutions stepped in to help regulate the stock market shift.

The benchmark Shanghai Composite Index increased by 2.6%, or 64.05 points, to close at 2,550.46, its most significant single-day gain since August 7th. It pared the week’s losses to 2.2%, narrowing down from a 7.6% slump last week.

The Shenzhen Composite Index, mostly comprised of smaller companies, surged by 2.6%, or 31.81 points, to 1,263.81, while ChiNext Index gained 3.7%, or 44.86 points, to 1,249.89.

The rally came after Vice-Premier Liu He, stated that the country’s stock market “is becoming the market with the most investment value” in the world, with “bubbles shrinking significantly”, in an interview with Chinese state media.

The heads of the People’s Bank of China, the China Banking, the Insurance Regulatory Commission and the China Securities Regulatory Commission also said on Friday they would take further action to ensure the healthy development of the market, and help listed private companies caught in a liquidity squeeze.