Stocks hit 2-week high as confidence returns

Chinese mainland stocks rose to a two-week high as volatility slumped amid growing investor confidence State intervention has stabilized equities.

The Shanghai Composite Index climbed 0.9 percent to 3,647.93 points at the close, led by technology and gold companies. While price swings in the gauge have fallen to an eight-month low and the number of new investors jumped to a four-month high, turnover slumped with trading volumes 19 percent below the 30-day average on Wednesday.

A sense of calm has returned to the stock market as authorities announced the resumption of initial public offerings, scrapped a rule requiring brokerages to hold net long positions and limited leveraged bets. The Shanghai gauge has rebounded 25 percent from its August low, after tumbling 43 percent from its June peak.