Economics
China Stocks Rise to 8-Week High on State Company Reform Outlook
- Telecom stocks rise after government reorganizes industry
- State to inject 231.4 billion yuan into new tower company
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Chinese stocks rose to an eight-week high as a government plan to reorganize the telecom industry raised speculation policy makers will accelerate reforms of state-owned companies to stem slowing economic growth.
The Shanghai Composite Index climbed 2.3 percent to 3,338.07 at the close, the highest level since Aug. 21. China United Network Communications Ltd. and China Mobile Ltd. gained at least 2.7 percent after the government injected 231.4 billion yuan ($36 billion) of network assets such as base stations into a new company called China Tower Corp.