China shares post solid gains on rule changes to boost banks

HONG KONG, June 10 Tue Jun 10, 2014 3:09am EDT

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HONG KONG, June 10 (Reuters) - China shares posted their best gains in almost a month on Tuesday, led by strong gains in financial counters after China detailed which banks would benefit from a recently promised cut of required reserves ratios.

The Shanghai Composite Index ended up 1.1 percent at 2,052.53 points, while the CSI300 of the leading Shanghai and Shenzhen A-share listings rose 1.3 percent. It was the best day for both indexes since May 12.

On May 30, China said there would be cuts in reserve requirements for some banks. Late on Monday, the People's Bank of China announced cuts in the levels for banks that have sizable loans to the farming sector and small- and medium-sized firms.

China's big four state banks were all stronger on Tuesday, led by Industrial and Commercial Bank of China. The top Chinese lender climbed 1.9 percent, its biggest one-day gain in two months, to close at its highest since Dec. 12.

Brokerage firms were pushed up by the resumption of initial public offerings (IPOs) in the mainland markets after a four-month hiatus.

Sinolink Securities surged 5.5 percent. CITIC Securities was up 2.9 percent and Haitong Securities 1.9 percent. (Reporting by Grace Li; Editing by Richard Borsuk)

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