China Shanghai Composite Index surges 2%
China's shares surged higher Thursday, as better news from the Eurozone and the U.S., plus China "blue chip" stocks trading at historically low valuations, brought investors and funds into the market.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 2.0%, or 44.48 points, at 2312.56. The Shenzhen Composite Index rose 1.9%, or 16.13 points, to 865.72.
Total turnover on the two bourses rose to 103.93 billion yuan (16.47 billion U.S. dollars) from 90.09 billion yuan on the previous trading day.
China will expand its fiscal budget for agriculture and direct more fixed-asset investment toward the sector in 2012, according to a document issued Wednesday by the Central Committee of the Communist Party of China (CPC) and the State Council, or China's Cabinet.
The news boosted shares of agricultural firms, with Xinjiang Talimu Agriculture Development Co., Ltd. and Wanfu Biotechnology (Hunan) Agricultural Development Co., Ltd. surging by the daily limit of 10 percent to close at 8.22 yuan and 22.9 yuan per share, respectively.
Hunan Jinjian Cereals Industry advanced 5.3% to CNY5.20, Hunan Zhenghong Science & Technology Development rose 4.9% to CNY4.46 and Heilongjiang Agriculture climbed 3.1% to CNY8.88.
The government will relax restrictions on the usage of private capital, foreign capital and funds from international organizations in setting up small financial institutions, according to a statement released after a State Council executive meeting presided over by Premier Wen Jiabao.
Banks rose over the announcement, with the Industrial Bank Co., Ltd. gaining 4.35 percent to close at 14.15 yuan and Shanghai Pudong Development Bank up 3.52 percent to 9.4 yuan.
The Industrial and Commercial Bank of China, the world's largest bank by market value, climbed 2.34 percent to 4.38 yuan. China Vanke, the country's largest real estate developer, saw shares go up 1.59 percent to 7.68 yuan.
Ping An Insurance (Group) Co. of China jumped 6.0% to CNY39.64, Industrial Bank gained 4.4% to CNY14.15 and China Life Insurance added 4.0% to CNY19.07.
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