Chinese shares rise 2.84% on recovery hopes

Special Report:Global Financial Crisis

An investor is inside a securities firm
inChengdu, southwest China's Sichuan ProvinceApril 13, 2009.
(Xinhua Photo)
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BEIJING, April 13 (Xinhua) -- Chinese shares rose
2.84 percent Monday, advancing for a third consecutive day to a nearly
eight-month high, on hopes that the economy had outperformed expectations in the
first quarter.

Premier Wen Jiabao told reporters in Thailand
Saturday that the economy showed signs of better-than-expected changes during
the first quarter as a result of the economic stimulus package.

The National Bureau of Statistics is scheduled to
release first-quarter growth data Thursday, which are expected to demonstrate a
recovery in the world's fastest-growing economy.

Data already announced have been positive. The
central bank said over the weekend that new loans increased 1.89 trillion yuan
(about 278 billion U.S. dollars) in March, the third straight month that new
loans exceeded 1 trillion yuan.

Economists said the March figure indicated that
China's liquidity was abundant, which was crucial to an economic recovery.

Wen said industrial output rose 8.3 percent in March,
up from a record low of 3.8 percent in the first two months of the year.

The benchmark Shanghai Composite Index reacted to the
positive news and closed at 2,513.7 points, up 69.48 points. The Shenzhen
Component Index was up 2.08 percent, or 194.36 points, to 9539.8.

Gains outnumbered losses by 616 to 205 in Shanghai
and 532 to 173 in Shenzhen.

Combined turnover rose to 280.46 billion yuan from
239.98 billion yuan the previous trading day.

Coal producers led gains Monday on speculation that
coal prices might be raised. The country's largest coal producer, China Shenhua
Energy, and six other producers, surged by the daily limit of 10 percent.

Steel stocks gained on hopes of more demand as
industrial output picked up. Baoshan Iron Steel, the nation's top steel
maker, rose 4 percent to 5.97 yuan.

PetroChina went up 4 percent to 11.94 yuan and
Sinopec rose 5.34 percent to 9.47 yuan on news that the country might soon
announce details on a stimulus package for the petrochemical sector.

Shipping lines and other cargo carriers gained
broadly on anticipation of an economic recovery. China Cosco rose by the daily
limit of 10 percent to 12.87 yuan. China Shipping Development climbed 10 percent
to 13.08 yuan. China Southern Airlines, one of the nation's three major
carriers, rose 6.22 percent to 6.15 yuan.

Securities analysts expressed optimism about
continued gains in the near term. Shanghai-based Shiji Investment said in a
report that heavyweights had showed signs of robust performance and the market
may rise to new highs.

Analysts at Huaxun, an on-line financial information
service, said the market would find support at about 2,450 to 2,470 on buoyant
confidence, with investors anticipating a recovery.