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China shares hit 9-month high on rebound hopes

China shares hit 9-month high on rebound hopes

China's benchmark stock index rose to a nine-month high Tuesday, on renewed hopes that the economy is poised for a recovery. Property shares led the advance.
The benchmark Shanghai Composite Index edged up 7.43 points, or 0.3 percent, to 2,567.34, its highest close since Aug. 8, 2008. The Shenzhen Composite Index for China's second exchange jumped 0.9 percent to 867.23.
The benchmark's gain was narrower than Monday's 3.3 percent climb, but analysts said buying enthusiasm was still strong.
"At least in the short term, the economic outlook is optimistic. From private to fixed assets investment, data all showed well," said Huang Xiangbin, an analyst for Cinda Securities in Beijing.
Real estates shares climbed after a housing industry group said China's property market bottomed out in the first quarter of the year. China Vanke Ltd., the country's biggest developer, gained 2.7 percent to 9.04 yuan, while rival Poly Real Estate Group, rose 1.5 percent to 20.29 yuan.
Fujian-based companies soared on the Cabinet's approval Monday of a plan to develop the province nearest to Taiwan into a coastal economic zone. Fujian Cement Inc. and Fujian Expressway Development Co. both surged by the daily 10 percent limit _ to 8.04 yuan and 6.94 yuan, respectively.
Renewable energy shares jumped after Chinese media reported the government is drafting policies to favoring the industry. Wuhan Linuo Solar Energy Group added 4.4 percent to 2.21 yuan and Shenzhen Desay Battery Tech Co., which makes mercury-free batteries, added 1.4 percent to 10.03 yuan.
In currency markets, the yuan strengthened to 6.8197 to the U.S. dollar, up from Monday's close of 6.82166.


Updated : 2021-06-21 19:25 GMT+08:00