Chinese shares soar amid global recovery

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Beijing, Feb 16 (IANS) Chinese shares surged on Tuesday and regained the 2,800-point mark, joining a rebound across global capital markets.

The benchmark Shanghai Composite Index gained 3.29 percent to close at 2,836.57 points while the smaller Shenzhen index surged 3.89 percent at 10,045.37 points, XInhua reported.

The ChiNext Index, which tracks China’s NASDAQ-style board of growth enterprises, soared 4.02 percent to close at 2,201.93 points.

Total turnover on the two bourses witnessed a significant rise, standing at 500.34 billion yuan ($76.82 billion).

The gains swept across all sectors, with the sub-indexes related to ship-building, oil and electricity devices leading the charge.

Altogether over 200 stocks rose by the daily limit of 10 percent, and over 900 stocks surged beyond five percent.

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The market extended Monday’s uptrend by opening slightly higher in the morning, and maintained the momentum for the whole day’s trading before finally climbing beyond 2,800 points.

Chinese shares rebounded on Tuesday amid an economic recovery across the globe, especially in Asian stocks.

Japan’s 225-issue Nikkei Stock Average closed 0.2 percent higher, following its surge of over seven percent on Monday.

Market confidence was restored after a prominent official reassurance about the yuan’s steadiness — the governor of China’s central bank dismissed speculation about RMB depreciation in an interview with financial magazine Caixin.

The central parity rate of the yuan strengthened by 196 basis points to 6.5118 against the US dollar on Monday.

The market sentiment was also boosted by new data showing that China’s bank lending exploded in January.

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China’s new yuan-denominated lending jumped to 2.51 trillion yuan ($385 billion) in January, up 71 percent from a year earlier and well above market forecasts, official data showed on Tuesday.

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