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China shares extend rally on Wall Street gains

China shares extend rally on Wall Street gains

Chinese shares rose for a third day Thursday, led by blue chips, as Wall Street's gains and hopes for an economic revival fueled buying sentiment.
The benchmark Shanghai Composite Index climbed 17.27 points, or 0.7 percent, to 2425.29, reaching a new seven-month high. The Shenzhen Composite Index for China's smaller second exchange added 0.8 percent to 805.12.
But the gains were modest compared with other markets in Asia such as the Chinese territory of Hong Kong, where the Hang Seng index vaulted 7.4 percent, and Japan, where the Nikkei gained 4.4 percent.
Analysts said the Chinese market extended a rally that began last week, with the buying focus shifting from smaller-cap stocks to blue chips after the Dow Jones Industrial Averages rose 2 percent overnight.
"There's certainly an expectation of economic revival there considering the fact of ample amount of liquidity in the market. The rally on external markets today gave it a push," said Wu Feng, an analyst for Tx Investment Consulting in Shanghai.
The Shanghai index is one of the world's best performers this year, soaring 30.3 percent in the first three months of the year following Beijing's announcement of a multibillion-dollar stimulus plan.
Financials jumped on expectations of strong first quarter earnings. China Construction Bank Ltd., the country's second-largest lender by assets, rose 1.6 percent to 4.39 yuan and Bank of Communications Ltd. rose 2 percent to 6.62 yuan.
Ping An Insurance Co., the nation's second-ranked insurer, vaulted 3.2 percent to 40.02 yuan, and China Life Insurance Co. climbed 2.8 percent to 23.76 yuan.
Aluminum Corp. of China, or Chinalco, rose 2.9 percent to 11 yuan, and Baoshan Iron & Steel Ltd., China's biggest steelmaker, gaining 1.5 percent to 5.92 yuan.
Papermakers surged in expectation of higher sales ahead of a Chinese holiday that starts Saturday when families visit the graves of dead loved ones and burn paper houses, cars and other gifts for them.
Shandong Bohui Paper Industry Co. jumped by the daily maximum of 10 percent to 8.21 yuan and MCC Meili Paper Industry Co. soared 7.4 percent to 11.87 yuan.
In currency markets, the yuan strengthened to 6.8336 to the U.S. dollar, up from Wednesday's close of 6.83405.


Updated : 2021-10-26 13:35 GMT+08:00