Chinese equities closed higher for the third straight day Friday, as the government said its proactive fiscal policy would continue in the second half to maintain economic growth.
The benchmark Shanghai Composite Index closed at 3,372.6 points, up 44.11 points, or 1.33 percent. The Shenzhen Component Index closed at 13,531.72 points, up 10.07 points, or 0.07 percent.
Combined turnover rose to 337.95 billion yuan (49.48 billion U.S. dollars) from 298.69 billion yuan the previous trading day.
Investor confidence was boosted as the government made clear late Thursday that it would continue its proactive fiscal policy in the second half to maintain economic growth.
President Hu Jintao said Thursday the government should adhere to its proactive fiscal policy and moderately easy monetary policy to ensure stable economic growth as the recovery was not yet solid.
Premier Wen Jiabao reiterated that the economy was in a crucial phase and rebounding. He pledged to maintain the macroeconomic policies and fully implement the 4-trillion yuan stimulus package.
Encouraged by the economic prospects, resources shares gained as investors put their faith in rising energy and resources demand driven by the economic recovery.
Energy heavyweights moved up, as PetroChina, the country's largest oil and gas producer, surged 5.41 percent to 16.18 yuan, while Sinopec, China's largest oil refiner, saw its price up 3.48 percent to 14.27 yuan.
The nonferrous metals sector led the advance, rising 4.08 percent, with four companies rising by the daily limit of 10 percent, including heavyweight Chalco, China's top aluminum company, which closed at 17.89 yuan.
Coal producer shares also benefited from market optimism by gaining 2.41 percent. China Shenhua Energy Co., the nation's largest coal producer, rose 6.23 percent to 40.07 yuan.
Losers outnumbered gainers by 583 to 280 in Shanghai and 517 to 230 in Shenzhen.
(Xinhua News Agency July 24, 2009)
