Markets

China shares rise 2.3% on Friday

(Agencies)
Updated: 2010-07-09 16:32

SHANGHAI: Chinese shares rebounded Friday after the central bank reaffirmed loose monetary policy, ending the week up by 3. 7 percent. [China reaffirms yuan stance, loose monetary policy]

The benchmark Shanghai Composite Index gained 55.77 points, or 2.3 percent, to close at 2,470.92. The Shenzhen Composite Index for China's smaller second exchange added 2.9 percent to 984.32.

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Buying enthusiasm was kindled after the central bank said it will maintain a "moderately easy" monetary policy this year, analysts said.

"The central bank's announcement boosted investors' confidence and dispelled worries on tightening policies," said Chen Jinren, an analyst for Huatai Securities in the eastern city of Nanjing.

The market has fallen 24 percent this year on worries that the government will wind down its stimulus policies and rein in credit.

Blue chips led the recovery, with real estate clawing back some previous losses.

Poly Real Estate Group, China's second-biggest developer, rose 3.8 percent to 11.42 yuan, while rival China Vanke Ltd added 2.4 percent to 7.24 yuan.

Airlines were heartened by a news report that Air China Ltd's June passenger numbers rose 70 percent from a year earlier. Air China added 3.9 percent to 10.79 yuan, while China Eastern Airlines Corp soared 5.6 percent to 6.77 yuan.

Bank of China Ltd gained 2 percent to 4.8 yuan, while China Construction Bank Ltd rose 1.9 percent to 3.54 yuan. Industrial & Commercial Bank of China Ltd, China's biggest commercial lender, climbed by 1.5 percent to 4.19 yuan.

In currency markets, the yuan strengthened to 6.7735 to the US dollar from Thursday's close of 6.7760.