By Zhang Shidong
Sept. 25 (Bloomberg) -- China's stocks surged on speculation state-owned controlling shareholders will increase stakes in their listed units to help bolster the world's second worst- performing stock market.
China Oilfield Services Ltd. and Offshore Oil Engineering Co., the two listed units of the nation's third-largest oil producer, both surged more than 7 percent on speculation their mutual parent will increase its holdings in the companies.
``More central-government owned enterprises will buy shares in their listed units to reflect the regulators' directive to bolster the market,'' said Lu Yizhen, who oversees the equivalent of $732 million as chief investment officer at Tianhong Asset Management Co. in Beijing. ``The rebound is very likely to carry on.'' Lu said he has bought shares, declining to give details.
The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, surged 84.68, or 4 percent, to 2,223.53 at the close, extending a gain of 0.7 percent yesterday. Only 11 stocks fell on the 300-member gauge.
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To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net
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