China Stocks Cap Best Week Since June on SOE Reform Speculation

China’s stocks rose to an eight-week high as traders speculated the government will accelerate reforms of state-owned companies and data showed the nation’s broadest measure of new credit exceeded estimates.

The Shanghai Composite Index climbed 1.6 percent to 3,391.35 at the close. The benchmark gauge surged 6.5 percent this week for the steepest gain in four months. AVIC Aero-Engine Controls Co. and Beijing Capital Co. both jumped 10 percent to lead rallies for aerospace and utility shares on prospects for industry restructuring. The market’s two-week rebound continued to lure back investors, with Friday’s trading volumes jumping to their highest level since Sept. 2 and margin debt advancing for a sixth day on Thursday for the longest stretch of gains in two months.