SHANGHAI, May 24 (Reuters) - China’s key stock index surged more than 3 percent on Monday, buoyed by a surge in property shares after a local media report quoted a government official as saying a new property tax recently under discussion would not be implemented within the next three years.
The Shanghai Composite Index .SSEC rose as high as 2,665.8 points, its highest in more than a week and rebounding after last Friday's tumble to its lowest in more than one year.
“The market is taking comfort from the report,” said Zhang Gang, analyst at Central Securities.
“There is also less concern now that harsher (property) measures will be implemented in the near term.”
Shanghai’s property index .SSEP rose 5.1 percent, substantially outperforming the wider market. (Reporting by Farah Master; Editing by Edmund Klamann)