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Chinese shares rise to 10-month high on market optimism

(Xinhua)
Updated: 2009-06-18 16:34

Chinese shares rose to their highest level since the end of last July after gaining 1.56 percent on Thursday, as investor confidence received a boost with the World Bank raising its forecast of China's economic growth this year.

The benchmark Shanghai Composite Index gained 43.78 points, or 1.56 percent, to close at 2,853.9. The Shenzhen Component Index closed at 11,151.63 points, up 111.14 points, or 1.01 percent.

Combined turnover expanded to 225.08 billion yuan ($32.95 billion) from 186.05 billion yuan the previous trading day.

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Gainers outnumbered losers by 520 to 315 in Shanghai, and 414 to 316 in Shenzhen.

The World Bank announced Thursday morning that it had raised its forecast of China's economic growth rate to 7.2 percent in 2009 from its earlier forecast of 6.5 percent.

Premier Wen Jiabao also gave rise to market optimism, after saying Wednesday that China's economy, which was at a critical juncture, had begun to recover "steadily."

Economic performance had started to show positive changes, and the government should continue a pro-active fiscal policy and moderately relaxed monetary policy, he told an executive meeting of the State Council, China's Cabinet.