Subdued inflation data in Nov spark stock rally

More policy measures to spur economic growth on cards, including cut in reserve ratio, say sources

Mainland share prices recovered some lost ground on Wednesday as low inflation data helped bolster market sentiment and recoup from Tuesday's losses, said capital market sources.

Investor confidence resurfaced on Wednesday after the National Bureau of Statistics said inflation remained at lower levels in China during November, and stoked hopes of further policy easing by the government to spur growth. Though the overall confidence level has improved, opportunities for profit taking are still limited due to the high volatility, the sources said.