Chinese stocks rose more than 4.5% on Monday, their biggest gain in a month, after rumours of company restructuring in the shipping industry.

The CSI300 index .CSI300 rose 4.5 percent to 4,084.36 points, with the Shanghai Composite Index .SSEC climbing 4.9 percent to 3,928.82.

Merger speculation has propped up the markets, with major shipping companies halting trading due to pending announcements. China is planning to merge China Ocean Shipping Co and China Shipping Co, the two major state owned shipping companies, according to Bloomberg.

Du Changchun, an analyst at Northeast Securities in Shanghai, told Reuters:

“China’s economic indicators are not very good which means monetary policy will continue to be accommodative.

“Investors are also betting that SOE (state-owned enterprise) reforms will inject life into the market. Trading volumes in the stock market today picked up why.”

The Chinese government have implemented measures to stimulate the markets and fight off a crash. Analysts at Goldman Sachs estimate that the “national team” has potentially spent 860-900 billion yuan to support the stock market in over the last two months.

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