China stocks rise at market open after top stock regulator removed

Getty Images              After losing 43% over the past year BHP Billiton shares rallied Tuesday

Getty Images After losing 43% over the past year BHP Billiton shares rallied Tuesday

Whether due to the replacement of Xiao Gang as China's chief stock market regulator or other factors, Chinese stocks have enjoyed a barnstorming start to the week. The MSCI Emerging Markets Index advanced toward the 50-day moving average after surging 4.2 percent last week.

The rupiah rose after a central bank official said the cut in lenders' reserve requirements will add 165 trillion rupiah (RM51.685 billion) of potential capital for economic development.

Xiao Gang, 57, a former head of Bank of China Ltd., had been chairman of the China Securities Regulatory Commission (CSRC) since March 2013.

The decision, seen as a move to restore market confidence, was cheered from China's retail investors, many of whom were burnt by the recent stock market rout. "I would stay cautious on this development", he said, adding that he will continue to build up positions if there are corrections in the market.

The MSCI Emerging Markets Index added 0.3 per cent to 742.84 at 11:16am in Hong Kong. The benchmark gauge has declined 6.5 percent this year and trades at 10.9 times the projected 12-month earnings of its member stocks.

Altogether more than 2,400 stocks gained during the day's trading, with 87 stocks up by the daily limit of 10 percent.

The announcement follows a string of assurances from senior leaders since the Lunar New Year holiday that China will underpin its slowing economy and steady its wobbly currency.

Xiao will be replaced by Liu Shiyu, formerly chairman of Agricultural Bank of China.

Reliance Industries, operator of the world's biggest oil-refinery complex, climbed 1.4 percent in Mumbai, while China Shenhua Energy Co. gained 3 percent in Hong Kong.

Vietnam's VN Index increased 0.8 percent, poised for the highest close since January 13.

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