China Stocks Rebound After PBOC Governor, Premier Wen Vow to Help Europe
China’s stocks rebounded after Premier Wen Jiabao and the head of the central bank said they will help Europe resolve its debt crisis, easing concerns the export slowdown will worsen and drag down the economy.
The Shanghai Composite Index rose 0.3 percent to 2,352.43 at 10:36 a.m. local time, erasing a drop of as much as 0.4 percent. The CSI 300 Index added 0.5 percent to 2,535.05, led by material companies. Jiangxi Copper Co., the nation’s biggest producer of the metal, jumped 1.7 percent to 26.81 yuan. Cosco Shipping Co. advanced 0.5 percent to 4.50 yuan.
China will participate in resolving Europe’s debt crisis, People’s Bank of China Governor Zhou Xiaochuan said in Beijing today. The nation is ready to be more involved in resolving the crisis through the EFSF and European Stability Mechanism, he said in a speech, echoing comments made yesterday by Premier Wen at a joint press conference with European Union President Herman Van Rompuy.
European finance ministers canceled a Brussels meeting slated for today and will hold a teleconference instead to prod Greece to do more to clinch an aid package worth 130 billion euros ($170 billion) along with about 100 billion euros of debt relief from private bondholders. Greece needs the aid to make a 14.5 billion-euro bond payment on March 20.
Europe is China’s biggest export market, making up about 18 percent of the nation’s overseas.
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