The Shanghai Composite Index (SCI) rebounded to post a 1.1% gain on March 20, having plunged to its lowest level in nine months during morning trading, AP reported. At one point, the market was down 6.5% to 3,516.33 – a level not seen since June 7, 2007 – before recovering to close at 3,804.05. The initial decline was led by oil and gas giant PetroChina, which accounts for about one quarter of the SCI’s total value. Shares in the company slipped by 6.73%, but stabilized in the afternoon to finish down by 2.3%. Financial stocks also recovered from poor starts to the day. The SCI is still down 28% so far this year. Recent struggles have been linked to a flood of new shares on to the market following the expiry of lock-up periods for initial public offerings and the ongoing non-tradable share reform program.
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