Asian markets rally as China says stock market correction 'almost over'
The People's Bank of China (PBOC) stated it was taking new steps to inject liquidity into its struggling economy and said the stock market's correction was "almost over".  The PBOC said it would expand a pilot scheme that allows banks to borrow money from the central bank using high quality credit assets as collateral.  This resulted in China shares jumping to over 3% today, their highest level in seven weeks; Hong Kong stocks were firmer as well.  Furthermore, the VIX index, a volatility gauge of investor nervousness, was at its lowest since late August, which is believed to be a sign that optimism is returning to the markets after a tumultuous summer.  

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Equity markets in China outperformed the region on Monday, following a report by the China Securities Journal that quoted a senior central banker saying that the country's stock market correction is "almost over." Yi Gang, deputy governor of the People's Bank of China (PBOC) told an annual meeting of the International Monetary Fund (IMF) and World Bank in Peru that the corrections in the mainland's equity market have had limited impact on the world's second-biggest economy as Beijing has taken a series of measures to avoid systemic risks, reported Reuters citing the official Chinese media. The central bank also announced over the weekend the expansion of a pilot scheme that allows banks to borrow money using high quality credit assets as collateral. Meanwhile, investors also seem to be betting on the possibility of further stimulus measures when Beijing meets later this month to discuss the 13th five-year plan, wrote analysts at the Bank of America Merrill Lynch in a note released Monday.





Mainland markets soar China's share markets came off the day's highs in the afternoon trading session, with the Shanghai Composite closing up 3.3 percent at its highest level since August 24. Earlier in the session, it surged more than 4 percent to hit an intra-day high of 3,318.7. Among other indexes, the CSI300 Index closed up 3.2 percent to clinch a seven-week peak. The smaller Shenzhen Composite surged 4.2 percent. Hong Kong's Index got a lift from the rally among its mainland peers and traded nearly 1 percent higher on Monday. In other news, Hong Kong-listed shares of Glencore are in a trading halt pending release of information on certain assets in Australia and Chile, the Hong Kong Stock Exchange said Monday.

An investor observes stock market at a stock exchagne hall on September 22, 2015 in Nanjing, China. ChinaFotoPress | Getty Images