China's Stocks Stabilize After Rout as Zhou Sees Room to Ease
- PBOC Governor Zhou highlights scope for further actions
- Shanghai Composite tumbled most in a month on Thursday
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Equilibrium returned to China’s stocks after Thursday’s turmoil as the central bank Governor Zhou Xiaochuan said policy makers have room for further easing to stimulate economic growth.
The Shanghai Composite Index climbed 1 percent to 2,767.21 at the close, after plunging 6.4 percent Thursday. Stocks tumbled amid signs of tighter liquidity and concern that planned reforms of initial public offerings will lead to an increased supply of small-company shares. The regulator denied speculation the new registration system will begin with the ChiNext small-cap board. Energy producers led gains in Shanghai and Hong Kong, where the benchmark Hang Seng Index jumped 2.5 percent.