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Chinese shares continue gains on stimulus plans

(Xinhua)
Updated: 2009-02-20 15:40

Chinese equities continued rising Friday despite an overnight plunge on Wall Street, after the central government's announcement of stimulus plans for the light industry and petrochemical sector Thursday night.

Related readings:  China stocks rebound a bit but turnover shrinks  China stocks surge 3% in massive turnover  China stocks surge 3.2% to five-month high  China stocks tumble 4.7%, turnover shrinks

The benchmark Shanghai Composite Index climbed 1.54 percent, or 34.35 points, to 2,261.48. The Shenzhen Component Index rose by a larger 2.56 percent, or 209.87 points, to 8,423.77.

Combined turnover was 173.41 billion yuan ($25.35 billion), slightly up from 170.65 billion yuan on the previous day.

Gainers outnumbered losers by 831 to 44 in Shanghai and 723 to 32 in Shenzhen.

The plans would benefit a wide-ranging industries, including home appliance production, leather processing, food manufacture and petrochemical industry, analysts said.

The support plans would lift processing trade restrictions on some labor-intensive, technology-intensive, energy-efficient, and environment-friendly products and further raise export rebates of some light industrial products.

The State Council, or the Cabinet, also decided to expand the home appliance subsidy program for farmers, with two more products - microwave ovens and induction cookers - to be added to the list.