Financials, property boost Shanghai stocks

Strong financials and property stocks led mainland shares higher yesterday, although turnover remained thin while oil refiners and steel makers sagged.

The Shanghai Composite Index ended up 1.54 percent at 2803.019 points, recouping most of the losses suffered on Monday, when it slid 2.52 percent on concern that monetary policy might be tightened further to fight inflation.

The biggest bank, Industrial and Commercial Bank of China, rose 2.16 percent to 5.2 yuan while property giant Vanke climbed 3.77 percent to 9.35 yuan - further signs that some funds were resuming buying blue chips in the belief that many valuations had fallen to reasonable levels.