Chinese shares stand above 2,300 mark again on supportive policy expectation

Special Report:Global Financial

Crisis

A stock holder reacts in front of a

board displaying stocks index in Beijing, capital of China, on Feb. 23,

2009. Chinese equities gained almost 2 percent Monday as investors

expected more stimulus policy on property sector, analysts said. The

benchmark Shanghai Composite Index climbed 1.96 percent, or 44.3 points,

to 2,305.78. The Shenzhen Component Index was up 3.61 percen to 8,727.7

points. (Chinese media/Li Xiaoguo)
Photo Gallery

BEIJING, Feb. 23 (Chinese media) -- Chinese equities gained

almost 2 percent to stand above 2,300 points Monday as investor confidence was

boosted by media reports of a possible government stimulus plan for the real

estate sector over the weekend, analysts said.

The benchmark Shanghai Composite Index climbed 1.96

percent, or 44.3 points, to 2,305.78. The Shenzhen Component Index was up 3.61

percent to 8,727.7 points.

Combined turnover was 215.47 billion yuan (31.55

billion U.S. dollars), significantly up from 173.41 billion yuan on the previous

trading day.

Gains outnumbered losses by 864

to 16 in Shanghai and 734 to 14 in Shenzhen.

A stock holder reacts in front of a

board displaying the Shanghai Composite Index in Shanghai, China, on Feb.

23, 2009.(Chinese media/Pei Xin)
Photo Gallery

The upward trend was led by the auto and real estate

sectors.

The real estate sector rose 4.54 percent as media

reported that authorities said the central government had been studying a

stimulus plan for the property sector over the weekend.

Cheng Siwei, a renowned economist, said Saturday at a

public lecture that the property sector had replaced the energy sector as the

last of the ten industries that the government would support to stimulate the

economy.

A plan to rejuvenate China's property sector had

already been submitted to the State Council, China's Cabinet, for discussion and

approval early on this month.

China Baoan and Pearl River Enterprises rose by the

10-percentdaily limit to 9.45 and 7.15 yuan respectively. China Merchants

Property Development soared 9.79 percent to 18.06 yuan.

China Vanke, the country's largest residential real

estate developer, climbed 4.65 percent to 8.1 yuan. Shares of the Poly Real

Estate Group Co., China's second largest developer, gained 5.99 percent to 21.01

yuan.

China's auto shares also surged 5.1 percent as the

government had taken measures to promote new energy cars and subsidize farmers

to boost auto sales in rural areas.

SG Automotive, Fengfan Co., Weichai Power, Dongan

Power and Changfeng Motor rose by the 10-percent daily limit to 7.34 yuan, 8.34

yuan, 28.49 yuan, 7.15 yuan and 8.04 yuan, respectively.

The benchmark Shanghai Composite Index fell from

2,319.44 to 2,209.86 last Wednesday, the largest one-day drop this year in

falling volume as investors worried that large gains since Jan. 1 could not be

sustained, analysts said.