Chinese shares extend gains

Beijing, Oct 27 (IANS) Chinese shares closed higher on Tuesday as confidence was boosted by the central government announcing that pension funds will be ready for investment in 2016.

The benchmark Shanghai Composite Index edged up 0.14 percent to end at 3,434.34 points. The Shenzhen Component Index rose 0.6 percent to close at 11,758.41 points, Xinhua news agency reported.

The ChiNext Index, China’s NASDAQ-style board of growth enterprises, gained 1.44 percent to close at 2,563.96 points.

Total turnover on the Shanghai and Shenzhen bourses stood at 980 billion yuan ($154.35 billion), down from 1.1 trillion yuan the previous trading day.

Logistics and medical equipment led the pack while oil and coal shares reported the biggest losses.

The military industry performed extremely strong with 24 shares hitting the daily increase limit of 10 percent.

The indexes opened low in the morning, then fluctuated during the day and tumbled nearly three percent in the morning session before recovering at the end of trading.

The government is putting the finishing touches to regulation for pension fund investment, and is confident all will be in place for 2016, the Ministry of Human Resources and Social Security said on Tuesday.

The State Council, China’s cabinet, finalised its guidelines on investing pension funds in August. Around two trillion yuan ($315 billion) can be invested, according to the ministry.

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