HONG KONG, July 14 China shares posted their
best daily gain in a month on Monday as carmakers extended
recent gains after the government announced a fresh boost for
Chinese liquor makers also rose strongly.
The Shanghai Composite Index ended up 1 percent at
2,066.65 points, a four-week high, while the CSI300 of
the leading Shanghai and Shenzhen A-share listings climbed 1.1
It was the best day for both indexes since June 10.
In Shanghai, SAIC Motor Corp rose 2.4 percent,
following Friday's 1.6 percent gain, to close at its highest
since May 2013. BYD leapt 3.9 percent in Shenzhen.
In a notice published on Sunday, China urged government
officials to use more electric and plug-in hybrid cars as part
of its drive to cut pollution. It aims to put 5 million such
vehicles on the road by 2020.
Kweichow Moutai, the country's leading high-end
liquor producer, jumped 5.6 percent, the top boost on both
indexes. Another sector leader Wuliangye Yibin
spiked 5.9 percent.
Analysts said low valuations of these stocks may have
attracted some fund inflows as liquor sales are expected to
improve in the third quarter.
(Reporting by Grace Li; Editing by Kim Coghill)