Listed companies with ties to the family of Deng Xiaoping performed well yesterday despite the loss of their patriarch, sparking rumours some stocks were deliberately boosted.
That assumption was supported by the trading patterns of the Shougang Group.
Deng Zhifang , Deng's youngest son, was vice-chairman of steel-maker Shougang Concord International until he quit in 1995 amid a corruption scandal involving the firm's chairman.
After opening lower, Shougang Concord International and its affiliates, Shougang Concord Grand and Shougang Concord Century, were among the first stocks to recover, helping to rally the rest of the market.
The three companies closed 1 to 2.6 per cent higher.
DBS Securities research director Percy Au-young said there were unconfirmed rumours that the group had prepared to support its own stock before Deng's death.
Poly Investments Holdings, run by Deng's son-in-law He Ping, was even stronger yesterday, closing up a sharp 4.5 per cent.