SHANGHAI, Dec 25 (Reuters) - Chinese shares rose more than 2 percent to over five-month highs by midday on Tuesday, extending their uptrend since early this month, as investors bought property stocks on increasing optimism about the sector.
The CSI300 index of the top Shanghai and Shenzhen listings rose 2.5 percent to 2,439.7 points, while the Shanghai Composite Index was up 2 percent at 2,203.2 points. Both indices hit their highest since mid-July.
The main property index outperformed the broader market, jumping 4.1 percent by midday.
China Vanke Co Ltd, the country’s largest real estate developer by sales, was up 4.9 percent, while its nearest rival Poly Real Estate Group Co Ltd rose 5.3 percent.
The country’s reviving economy and strong demand for housing are likely to put upward pressure on prices next year, and the government is likely to keep in place controls aimed at curbing property inflation, a Reuters poll showed last week.
China’s stock market has rebounded since early December, after the Shanghai Composite Index found support at the psychologically important 2,000-point level.
The index, after moving in negative territory for most of 2012, is now up 0.2 percent so far this year. (Reporting by Lu Jianxin and Kazunori Takada; Editing by Daniel Magnowski)