Shares increase 2% on Wen's comments

The mainland stocks rose 2.14 percent to an eight-month closing high yesterday, with blue chips strong while airlines and autos outperformed after Chinese leaders' comments at a weekend forum boosted confidence over the economic outlook.

The Shanghai Composite Index ended at 2557.456 points. The index posted a fifth consecutive weekly gain last week. Turnover in Shanghai A shares remained active at 140.1 billion yuan, although this was down from Friday's heavy 157.1 billion yuan.

Analysts said investors were encouraged by comments from the weekend's Boao Forum, where Premier Wen Jiabao said the country's stimulus policies had delivered better results than expected although it would still be best to err on the side of caution in judging the economic situation.