THE head of China's Securities Regulatory Commission, Liu Hongru, threatened on Monday to throw mainland-listed firms off the country's two stock exchanges if they flout compliance standards.
Also on Monday, the official China Daily reported that the mainland would support the yuan for two more months, with new measures including setting limits on the amount of domestic currency allowed into swap markets.
Demand from US institutions helped make Shanghai Petrochemical the most heavily traded stock on Monday, its debut in Hong Kong, when it closed at $1.61, at a three-cent premium to the issue price.
After a sharp fall over the past four weeks, the Hang Seng Index finally staged a rally on Monday, jumping 107.75 points to 6858.08. However, brokers said the gains would be short-lived.
On Tuesday, a Hongkong Bank report predicted that the territory's gross domestic product growth would be reduced by 0.4 percentage points this year and by a further 1.2 points next year, due to China's projected economic slowdown. However, the report said the territory would ultimately benefit from a successfully reformed mainland economy.
Export growth in June plunged to 6.6 per cent, the lowest level in more than five years, to end a long run of surging trade expansion.
Company results CAPITAL Automation Holdings reported a 12.5 per cent fall in profit to $17.7 million for the past year.
