Chinese stocks hit eight-week high as reforms loom

Chinese stocks rose to an eight-week high as a government plan to reorganise the telecom industry raised speculation policymakers will accelerate reforms of state-owned companies to stem slowing economic growth.

The Shanghai Composite Index climbed 2.3% to 3,338.07 at yesterday’s close, the highest level since August 21.

China United Network Communicationsand China Mobile gained at least 2.7% after the government injected 231.4bn yuan (€32bn) of network assets such as base stations into a new company called China Tower.