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China shares resume upward climb; Shanghai index gains 1.1 percent

China shares resume upward climb; Shanghai index gains 1.1 percent

China stocks tracked recoveries in neighboring markets Thursday, with laggard stocks rising on bargain hunting.
The benchmark Shanghai Composite Index gained 58.46 points, or 1.1 percent, to 5,167.88. The Shenzhen Composite Index rose 2 percent to 1,439.80.
Despite the rebound, analysts said they expect the market's bull run to slow soon amid revived concerns that Beijing will move to cool the markets after Chinese President Hu Jintao called Wednesday for stronger supervision of the financial system.
Shanghai's benchmark index is up 93 percent so far this year, and China's economy expanded 11.5 percent in the first half of the year, putting China on track for its fastest annual growth since 1994.
"A recovery on neighboring bourses helped boost sentiment in the local market, but when the Shanghai index approached the psychologically important 5,200 level, buying interest shrank steadily," said Tang Xiaosheng, an analyst at Guosen Securities.
Other regional markets also rebounded following overnight gains on Wall Street. Japan's Nikkei 225 gained 0.9 percent and Hong Kong's Hang Seng Index advanced 2.0 percent to 23,484.54.
Chinese companies that underperformed the overall market the past few months rose Thursday as investors sought bargains.
Anhui Guofeng Plastic Industry was up by the 10 percent daily limit at 7.76 yuan; Xinjiang Ba Yi Iron & Steel also gained 10 percent, closing at 12.49 yuan; and chemical maker Sichuan Jinlu Group rose 10 percent to 10.41 yuan.
All had dropped or lagged behind the markets' gains in recent weeks.
Industrial & Commercial Bank of China, the country's largest bank, rose 1.3 percent to 6.80 yuan on news it sealed a deal to buy 79.93 percent of Macau's third-largest lender, Seng Heng Bank, for HK$4.55 billion (US$583 million;euro428 million).
In currency dealings, late dollar selling by a major Chinese state-owned bank helped boost the Chinese yuan to a fresh high against the U.S. dollar.
The dollar closed at 7.5410 on the over-the-counter market, down from Wednesday's close of 7.5487.


Updated : 2021-04-23 05:13 GMT+08:00