Stock prices get a boost from State purchases

Share prices rose on Monday, led by technology shares, on speculation of State buying after officials moved to tighten curbs on margin borrowing.

The Shanghai Composite Index rose 0.7 percent to 3,606.96 points at the close, with all the gains coming in the last 40 minutes of trading. The index slumped as much as 1.7 percent earlier. Suspected intervention by the central bank also helped the yuan jump sharply in offshore trading to reverse earlier losses.

While most sectors reversed early losses in the afternoon, transportation stocks remained subdued, with airline operators including China Eastern Co Ltd and Air China Ltd slumping amid concern the Paris attacks would deter people from traveling overseas.