Beijing, Sep 11 (IANS) Chinese shares rebounded to positive territory on Friday as the government ramped up efforts to prop up the economy.
The benchmark Shanghai Composite Index went up 0.07 percent to end at 3,200.23 points, Xinhua news agency reported.
The Shenzhen Component Index rose 0.37 percent to close at 10,463.69 points. The ChiNext Index, which tracks China’s NASDAQ-style board of growth enterprises, gained 1.05 percent to close at 2,060.51 points.
Total turnover on the two stock markets was 516.1 billion yuan ($81.1 billion), down from 610.7 billion yuan the previous trading day.
Winners outnumbered losers 608 to 293 in Shanghai, and by 1,014 to 357 in Shenzhen. Stocks in the textile and property sectors gained the most.
According to a report released on Thursday by the China International Capital Corporation, China is considering a fiscal stimulus of more than one trillion yuan over the next three years.
A total of 1.2 trillion yuan to 1.5 trillion yuan may be taken from government coffers to replenish capital for investment projects, mainly those already approved by the authorities, the investment bank estimated.
The stimulus is likely to drive a total potential investment of five trillion yuan to seven trillion yuan in the next three years, or 2.5 percent to 3.4 percent of the 2015 GDP each year, it said.
A UBS report said China’s infrastructure-investment growth will likely be revived from July’s 16 percent year on year to 20 percent in the coming months, which in turn “will provide a counterbalance against China’s ongoing property and heavy industry downturn”.