August 18, 2014 / 7:21 AM / in 3 years

RPT-Shangai stock index hits 8-month high despite worries over economy

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SHANGHAI, Aug 18 (Reuters) - China’s stock indexes rose on Monday, with the Shanghai Composite Index touching its highest in eight months despite concerns about the health of the economy.

Both the CSI300 index of leading Shanghai and Shenzhen A-share listings and the Shanghai Composite rose 0.6 percent, to 2,374.6 and 2,239.5, points respectively.

It was the highest close for the SSEC since December 2013.

Media-related companies posted big gains in both Shanghai and Shenzhen on Monday, though the sector is mainly dominated by small- and medium-sized enterprises (SMEs) in China.

Shanghai Ganglian E-Commerce Holdings and Guangdong Guangzhou Daily Meida jumped by the 10 percent daily limit.

China Baoan Group was the main boost for the CSI300, also jumping the 10 percent daily limit on persistent speculation in the stock following June reports that it would reallocate its investments out of real estate and toward new energy, analysts said.

But investors still remained cautious due to falls in China’s home prices and foreign direct investment (FDI).

China’s property prices slid for a third straight month in July, but shares in property developers -- many of which are index heavyweights -- evinced no particular reaction, rising in line with the broader indexes.

China drew $71.1 billion in foreign direct investment (FDI) in the first seven months of 2014, down 0.4 percent from a year earlier.

Reporting by Chen Yixin and Pete Sweeney; Editing by Kim Coghill

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