Markets

China stocks end up 2.1% on stable policy outlook

(Agencies)
Updated: 2010-07-19 16:55

SHANGHAI - China's key stock index closed up 2.1 percent on Monday, boosted by expectations that the government will maintain stable economic policies for the rest of the year.

Premier Wen Jiabao said on Sunday that China's economy was responding appropriately to stable policies, adding "relatively fast" growth would help create jobs and boost domestic demand. The Shanghai Composite Index closed at 2,475.4 points after shedding 1.9 percent last week. The index, which is one of the world's worst performers, second only to Greece, has lost over 24 percent of its value since the start of the year.

Related readings:  Stocks dip after easing rumors prove false - July 13  Property stocks rally on Monday  China stocks end at 2-wk high  Stocks drop on tightening concerns-Thur

Yuan-denominated A-shares have been hard hit by Beijing's moves to cool the country's fiery property sector, while a raft of recent initial public offerings including that by Agricultural Bank of China?have sapped investor demand.

"Investors are more confident that economic policies will remain stable and there is not a large possibility of major changes," said Xu Yinhui, analyst at Guotai Junan Securities in Shanghai.

AgBank was the most active stock, ending up 0.7 percent, while property heavyweight Gemdale rose 1.7 percent.

Shanghai's property sub-index was up 2.3 percent.

Turnover picked up to 79 billion yuan versus 56 billion yuan on Friday. Volume has been picking up in recent sessions, indicating the possibility of a potential upward path for the index.