China stocks rise on reports of regulatory support, Huafa concerns weigh on bonds

Chinese shares moved up in Monday’s early session after reports that regulators planned talks with financial firms on measures to bolster capital markets. The CSI300 gained about 0.5%, while the Shanghai Composite added 0.3%; the CSI300 had dropped 8.5% in October, its steepest monthly fall in more than a decade.

Business Recorder reported that regulators and banks were also expected to consider improving relending support for share buybacks and purchases. Meanwhile, bond funds remained under pressure amid concerns about state-backed Zhuhai Huafa Group, after reports it missed repayment on two maturing trust products and sought more time on some bank loans. Huafa-related shares fell again, and a fund holding 30-year Treasuries declined 0.3% after losing nearly 1% on Friday.