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China shares rebound on higher lending

China shares rebound on higher lending

Chinese shares rebounded Wednesday after a news report of strong bank lending in June and a survey showing manufacturing expanding.
The benchmark Shanghai Composite Index rose 48.79 points, or 1.7 percent, to close at 3,008.15, its first close above the symbolic 3,000 level since June 12, 2008. The Shenzhen Composite Index for China's smaller second exchange gained 1.6 percent to 977.46.
Investors were encouraged by news reports that June bank lending might have topped 1.3 trillion yuan ($190 billion) and two surveys released Wednesday that showed manufacturing expanding.
"The market, mainly supported by the adequate capital flow, is growing faster than the economy, but expectations of an economic recovery certainly supported the growth," said Cai Junyi, an analyst for Shanghai Securities.
Financial shares led the rally.
Ping An Insurance Co., the country's second biggest insurer, vaulted 5.5 percent to 52.2 yuan, while China Life Insurance Co. gained 3.6 percent to 28.53 yuan.
Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, jumped 1.1 percent to 5.48 yuan. Bank of China Ltd. increased 3.1 percent to 4.63 yuan, while China Construction Bank Ltd. added 2.7 percent to 6.19 yuan.
Real estate shares were boosted after a bidder set a new record price at auction for a plot of prime land in Beijing. China Vanke Ltd., the country's biggest developer, gained 3.5 percent to 13.19 yuan, while rival Poly Real Estate Group rose 3.9 percent to 28.97 yuan.
In currency markets, the yuan weakened to 6.8331 to the U.S. dollar, down from Tuesday's close of 6.8302.


Updated : 2021-03-06 22:54 GMT+08:00