Shares surge 7.63%, reversing downward trend

(Xinhua/Agencies)
Updated: 2008-08-20 12:53

Stock investors monitor the share price changes at a securities office in Shanghai August 20, 2008. China's stock index rose sharply by more than 7% on Wednesday. [asianewsphoto]

Chinese shares rallied more than 7 percent Wednesday led by financial sectors and heavyweights, reversing the downward trend in the previous trading days.

The benchmark Shanghai Composite Index closed at 2,523.28, 178.81 points or 7.63 percent higher. The Shenzhen Component Index also surged 7.13 percent to 8,531.15.

Aggregate turnover of the two markets hit 88 billion yuan ($12.83 billion). Gainers outnumbered losses by 1,501-1 in the two bourses.

The indices opened lower in the morning amid a overnight declining Wall Street indices. The Shanghai index opened at 2,332.48 points, down 0.51 percent over the previous close. The Shenzhen index dropped 0.57 percent to open at 7,918.57 points.

However, both bourses saw a broad-based rebound at around 10:00 am, driven up by many sectors including bank, securities, and insurance shares.

Dealers said that the market rebounded from a recent correction and also got a boost from comment by JPMorgan, which said that the Chinese government is considering a stimulus package of at least 200-400 billion yuan in tax cuts and capital and housing market stabilization measures.