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Chinese shares gain 2.44% on economic stimulus prospects

(Xinhua)
Updated: 2009-02-03 15:45

Chinese shares went up 2.44 percent on Tuesday amid a booming confidence. Investors expected a market rally after Premier Wen Jiabao repeated vows of more stimulus plans to boost the economy, dealers said.

Related readings:  Chinese shares up 1% as recovery signs boost confidence  Stock market gives investors holiday cheer  Shares slightly down tracking Wall Street losses  Shares stand above 2,000 points on positive economic trends

The benchmark Shanghai Composite Index rose 49.12 points, or 2.44 percent, to close at 2,060.81, while the Shenzhen Component Index gained 178.8 points, or 2.52 percent, to finish at 7,266.41.

Gains outnumbered losses by 788 to 35 in Shanghai and 664 to 37 in Shenzhen, and combined turnover reached a high of 148.5 billion yuan ($21.8 billion).

Dealers said the rally was also bolstered by the country's move to introduce a series of favourable policies to boost the development of textile and machinery industries.

Tuesday's Shanghai Securities News reported the textile industry support plan may include increasing export rebates for textile producers to 15 percent from the current 14 percent.

Fujian Nanfang Textile surged by a daily limit of 10 percent to 3.47 yuan, while Fynex Textiles rose 10.13 percent to close at 4.13 yuan.