Chinese shares end week higher

(Xinhua)
Updated: 2008-08-29 21:00

BEIJING - Chinese shares rose for a second consecutive day on Friday, as investors were betting that favorable policies would be announced over the weekend, analysts said.

The Shanghai Composite Index was up 47.23 points, or 2.01 percent, to close at 2,397.37. The key index has tumbled more than 54 percent this year and more than 60 percent from its peak in October.

In Shenzhen, the market gained 2.39 percent, or 187.19 points, to close at 8,004.24. Aggregate turnover increased to 56.7 billion yuan (US$8.3 billion) from 43.4 billion yuan on the previous trading day.

On the last trading day of a gloomy August, investors expected the market could say goodbye to a continuous drop in the coming month. They were betting on more favorable policies over the weekend and in September, analysts said.

Stocks rose across the board in the two markets. Gains outnumbered losses by 802-24 in Shanghai and 660-24 in Shenzhen.

Property shares led the advance. China Vanke, the country's top property developer, surged 5.2 percent to 7.08 yuan and Poly Real Estate, the country's second-largest developer by market capitalization, rose 3.86 percent to 14.52 yuan.

"Rally in the real estate shares was a result of market correction, as the sector had been oversold previously," Rising Securities analyst Pang Jianfeng said.

Coal producer shares gained across the board, boosted by talks that the government was likely to reward the productive producers in a bid to ease the coal shortage that plagued the country's electricity generators.

China Shenhua, the country's top coal producer, added 2.52 percent to 28.04 yuan. Yanzhou Coal Mining Company rose 4.35 percent to 14.39 yuan, while Datong Coal Industry Co. gained 5.75 percent to 16.55 yuan.

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