China stocks extended their rebound on Monday, with the Shanghai Composite Index rising over 4,000 points – a key psychological level – for the first time since July 2.
The benchmark index has so far rebounded nearly 20 percent from a four-month low hit last Thursday.
But the index is still down about 23 percent from its June 15 peak, when a three-week rout began that led to government taking a series of market support measures.
The Shanghai index is now mid-way between last week’s bottom and a perceived ceiling of 4,500 points, a level below which a government-backed bailout fund, formed by 21 brokerages, has promised not to sell.