Confidence back on hopes of reforms

Investors' appetite for equities seems to have returned amid anticipation of more government measures to boost the slowing Chinese economy.

The benchmark Shanghai Composite Index has rebounded by 19 percent from the August low of 2850.71 points and analysts said that the improved market sentiment may continue to drive equity gains.

Leveraged trading has resumed as margin traders who borrow money to purchase stocks have increased their holdings over the past week. The outstanding balance of margin loans at Shanghai and Shenzhen stock exchanges rose to 957.8 billion yuan ($152 billion) for five consecutive days as of Oct 4, indicating a strong buying sentiment.