Visa, MasterCard Shares Surge After News Of Relaxed Card-clearing Rules In China

Visa Inc.'s stock shot up 6.1% to an all-time high in midday trade Wednesday, following a Dow Jones Newswires report overnight that China will now allow foreign companies to set up bank card-clearing businesses. Visa's stock was the biggest percentage gainer among components of the Dow Jones Industrial Average , and the second-biggest gainer within the S&P 500 . The news also boosted MasterCard's stock , which rose 4.5% to trade within 1.2% of its March 5 record closing high of $92.81. China's new rules, which were unveiled on the main government website, follow a decision in October by China's State Council to ease its grip on bank and credit card clearing as part of an effort to open up the country's financial sector, DJ Newswires reported.