China stocks rise more than 3% on bank shares rebound

(Xinhua)
Updated: 2008-10-13 21:00

BEIJING - Chinese shares ended a week-long decline and rebounded on Monday, as regional markets rallied after central banks around the world made bold moves to stem the global financial crisis.

The benchmark Shanghai Composite Index gained 3.65 percent to end at 2,073.57 points. The Shenzhen Component Index closed at 6,571.59 points, up 2.92 percent.

Aggregate turnover edged up to 57.6 billion yuan (US$8.5 billion) from Sunday's 54.08 billion yuan.

Industrial and Commercial Bank of China shares rose 7.5 percent to finish at 4.3 yuan, while Bank of China shares climbed 6.75 percent to 3.32 yuan. Shares of China Merchants Bank surged by the daily limit to 15.22 yuan, up 9.97 percent.

Brokers also rebounded. CITIC securities rose 9.88 percent to 22.68 yuan. Haitong Securities went up by the daily limit of 10 percent to 22.12 yuan.

Energy shares regained some earlier losses after fears of weakened demand for crude oil.

PetroChina ended 0.49 percent lower at 12.1 yuan, compared to a 4.61percent decline in the morning. Sinopec, likewise, managed to recover from a 3.98-percent fall to close 0.82 percent higher at 9.88 yuan.

Analysts believed Monday's market was bolstered by optimism in the country's future growth.

A Communist Party of China meeting ended Sunday by concluding that the overall national economy was in good shape and economic growth remained unchanged.

On Monday, Hong Kong stocks soared by the largest extent of 10.24 percent among gains on the regional markets.

However, Galaxy Securities analyst Li Feng, said current market performance was inevitably under the negative influence of the ongoing global financial crisis.