China stocks rose on deeper policy speculation

China’s stocks rose, sending the benchmark index to a seven-week high, on speculation the government will take steps to avoid a deeper economic slowdown.

China Eastern Airlines Corp. and China Southern Airlines Co. gained at least 0.8 percent after the China Business News said jet fuel prices fell. Bank of China Ltd. and China Construction Bank Corp. retreated after Temasek Holdings Pte., Singapore’s state-owned investment company, sold $2.48 billion of Hong Kong-traded shares in the two banks.

The Shanghai Composite Index (SHCOMP) rose 1.64 points, or less than 0.1 percent, to 2,440.08 after changing direction more than 30 times, closing at the highest level since March 13. The CSI 300 Index (SHSZ300) advanced 0.3 percent to 2,691.52.

“Investors are in a dilemma,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “On one hand, there’s constant speculation about policy easing so there’s hope looking forward. But fundamentals for the overall economy remain weak.”