Feb 10 China shares closed at their highest in
nearly six weeks in robust volumes on Monday, as investors
cheered a litany of policy announcements seen favourable to
earnings growth for sectors from autos to insurers and
The Shanghai Composite Index ended up 2 percent at
2,086.1 points, its highest since Jan. 2, while the CSI300
of the biggest Shanghai and Shenzhen A-share listings
jumped 2.5 percent to its highest since Jan. 3.
Gains on Monday came in the strongest Shanghai volumes in
more than two months ahead of a fresh batch of macroeconomic
data later in the week. The People's Bank of China's two weekly
scheduled open market operations will also come into focus, with
maturities due to drain 450 billion yuan ($74.22 billion) this
Warren Buffett-backed BYD Co surged by the
maximum 10 percent limit in Shenzhen, leading gains in the auto
sector after the Chinese government extended subsidies for
electric vehicles beyond 2015.
The sector was further buoyed by an announcement from the
finance ministry at the midday trading break of an up to 18,000
yuan subsidy for every truck that is recycled in 2014.
Infrastructure-related companies were bolstered by a Chinese
news report late on Friday that the National Development and
Reform Commission is studying a plan to focus on fostering
economic development on a regional basis in the world's
Chinese insurers and pharmaceutical firms were buoyed by an
official announcement of a merger of rural and urban pension
plans. State media also reported the State Council recently
ordered an acceleration in the expansion of health insurance
covering serious illnesses for rural residents.
($1 = 6.0634 Chinese yuan)
(Reporting by Clement Tan in SINGAPORE; Editing by Jacqueline