China shares show robust gains, helped by auto policy and high metals prices

HONG KONG, July 22 Tue Jul 22, 2014 3:07am EDT

HONG KONG, July 22 (Reuters) - A Chinese market index of the leading Shanghai and Shenzhen A-share listings closed at its highest in three months on Tuesday, with gains coming in heavy volumes as autos, banking and property sectors all strengthened.

The CSI300 index rose 1.2 percent to close at the highest since April 23.

The Shanghai Composite Index gained 1 percent at 2,075.48 points, its highest close since June 16.

Tuesday was the best single day for both indexes since June 10.

Chinese carmakers jumped again, lifted by another policy announcement on Monday on promoting use of electric and plug-in hybrid cars.

BYD surged 5.6 percent in Shenzhen, while SAIC Motor Corp rose 1.7 percent to its highest close since February 2013.

Property developers extended gains after media reports said more cities have relaxed restrictions on house purchases. Poly Real Estate added 1.4 percent and China Vanke 2.7 percent.

Some metal firms soared the maximum allowed 10 percent as London zinc rose for a second session to hit a near three-year high on Tuesday and aluminium touched a new 16-month peak. (Reporting by Grace Li; Editing by Richard Borsuk)