Stocks climb on market merger rumor

Speculation of a possible merger between China’s A- and B-share markets has helped boost China stocks, the Financial Times reported. Expectation that investors would receive a premium for relinquishing B-shares if the markets were combined helped boost the Shanghai B index 9.3% to a 14-month high on Thursday – the biggest two-day gain since March 2001. Shenzhen’s B index has moved to a nine-month high, while the Shanghai composite index – which combines A and B shares – rose 1.5% to a 10-month high after declining 8.3% in 2005. Chinese shares listed in Hong Kong, or H-shares, rose to their highest level on Thursday since September 1997.