Stocks rise sharply on reports of new stimulus

SHANGHAI: Chinese shares ended sharply higher yesterday with broad rallies in blue chips like bank and non-ferrous metal stocks, while reports on pending policies to bolster the equipment manufacturing and textile industries steered a burst of cash into the market.

The benchmark Shanghai Composite Index surged 49.13 points, or 2.44 percent, to finish at 2060.81, the highest since Dec 12. And the Shenzhen Component Index rose 2.52 percent to 7266.41 points.

Advanced stocks on the two bourses far outnumbered losers by 1,606 to 88 yesterday, and the active trading also extended the combined turnover to 147.5 billion yuan, up 55.8 percent from the day before.