China shares enjoy best day in fortnight

Chinese shares enjoyed their best day in two weeks today (January 28th), helping to boost both the Shanghai SSE Composite and the Hong Kong Hang Seng.

This rally was thanks to the good reception comments by a senior central bank official received by investors when his words were published in several national newspapers.

Deputy governor of the People's Bank of China Pan Gongsheng said the pace and timing of freeing up interest rates needs to depend on banks' profitability and ability to replenish capital, as these two factors affect credit supply to the whole economy.

Mr Pan's comments also included a promise to develop the onshore bond market and reduce balance sheet risks for banks and another to begin publishing a regional breakdown of total social financing.

At close of play this morning, the Hong Kong Hang Seng rose by 0.3 per cent to an index value of 23671.8 points and the Shanghai SSE Composite soared by 2.4 per cent to 2346.5 points.

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