China State-Owned Firms Rally as Reform Hopes Reignite

Shares of China’s state-owned enterprises surged Monday on speculation that the government is ready to embark on a fresh round of consolidation in its broader reform push.

In Shanghai, China Railway Construction Corp. ended up 9.5 percent, while China United Network Communications Ltd. surged by the 10 percent daily limit. China Agri-Industries Holdings Ltd. ended up 14.7 percent to its highest level in a month. Sinotrans Shipping Ltd. jumped 5 percent in Hong Kong as rival companies connected to China Shipping Group and COSCO Group suspended trading on plans for “major issues.” People familiar with the matter said Friday that China was considering merging the two companies.