China Stock Index Halts Nine-Day Losing Streak as Banks Rebound

China’s benchmark stock index rose, led by banks and drugmakers, after a nine-day losing streak for the benchmark index drove valuations down to a four-month low and technical indicators signaled a rebound.

China Construction Bank Corp. and China Citic Bank Corp. rebounded at least 5 percent after plunging in late trade on Dec. 20. The Shanghai Stock Exchange said “abnormal trading” was caused by foreign investors adjusting their positions to track index changes. Guizhou Bailing Group Pharmaceutical Co. paced gains for drug stocks on expectations the outbreak of the bird flu will boost medical expenditures. Tianjin Zhonghuan Semiconductor Co. tumbled to a seven-month low after receiving a warning from the regulator to disclose information.