China's stock market rebounded in heavy trade on Thursday, led by a nearly 8 percent jump in Ping An Insurance after shareholders approved its controversial plan for an equity issue that could raise some $17 billion.
Both the market and Ping An had been depressed since mid-January by the insurer's fund-raising plan, as investors worried the market might not be able to absorb the huge issue and that other big firms might follow suit with cash calls. The Shanghai Composite Index ended up 1.59 percent at 4,360.986 points, but it was well off its intra-day high of 4,427.498.
Gaining stocks in Shanghai outnumbered losers by 507 to 381, while more than 15 Shanghai A shares rose their 10 percent daily limit. Turnover in Shanghai A shares swelled to 132.8 billion yuan ($18.68 billion) from Wednesday's 113.3 billion yuan.
Ping An soared its 10 percent daily limit at one stage before ending up 7.87 percent at 72.38 yuan, in the heaviest trade since it listed in Shanghai in March last year. The shares are down from 98.21 yuan in mid-January but up from their intra-day low of 65.01 yuan in late February.
Ping An's leap triggered a surge in other insurance stocks. Its bigger rival China Life Insurance was up 4.93 percent to 38.93 yuan, while China Pacific Insurance (Group) Co gained 3.81 percent to 36.51 yuan. The rebound may therefore continue to retest chart resistance on the 250-day average, now at 4,518.
Minsheng Bank climbed 2.24 percent to 13.72 yuan after its chairman told Reuters that its 2008 earnings growth would at least double, partly because of its planned sale of shares in Haitong Securities, and that the bank's shares were "absolutely undervalued".
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