Chinese shares advanced 3.68 percent on Thursday as the detailed economy stimulus plan approved by State Council, the country's Cabinet, on Wednesday buoyed investors' confidence.
The benchmark Shanghai Composite Index closed up 3.68 percent, or 68.50 points, to finish at 1,927.61. The Shenzhen index ended up 4.04 percent, or 247.36 points, to close at 6,364.03 points.
The combined turnover jumped to 113.03 billion yuan (US$16.55 billion) from Wednesday's 60.419 billion yuan.
An overnight sliding Wall Street dragged down Asian stocks. China's A share opened lower. However, it went against regional losses to climb 1.68 percent at mid-day boosted by further details on the country's massive stimulus plan.
The index kept going upward in the afternoon session. Analysts said the recent stimulus measures bore fruit and buoyed investors' confidence.
The country's cabinet announced to raise tax rebates on more than 3,700 items starting from next month to boost export, including labor-intensive, mechanical, electrical products and others.
The Cabinet also said it would spend more than US$25 billion on energy projects, including a natural gas link and nuclear power plants to spur the economy.
The electric equipment sector posted a general growth. Guangdong Nanyang Cable Group Holding Co. rose by the daily limit of 10 percent to 9.89 yuan. Shanghai Zhixin Electric Co. also advanced by the daily limit of 10 percent to 15.46 yuan.
Coal stocks sparkled the most. Xishan Coal Electricity Group rose by the daily limit of 10 percent to 8.99 yuan. So was Pingdingshan Tianan Coal Mining Co. at 13.16 yuan.
The forestry shares rose by the limit of 10 percent across the board after the government said on Wednesday the industry would receive support for restoration by 2010.
Yongan Forestry and Jilin Forest Industry Co. closed at 4.69 yuan and 5.80 yuan.
Aviation stocks gained as the Civil Aviation Administration considered cutting fuel prices. China Eastern Airlines Corporation gained 7.07 percent to 3.33 yuan. Air China rose 5.53 percent to 4.01 yuan.
Beneficiaries from the the 4 trillion yuan package unveiled on Sunday were further propped up by the detailed measures announced on Wednesday. They included the steel sector, cement sector, the building materials sector and others.
Steel stocks performed well with Xining Special Steel Co. up by the daily limit of 10 percent to 4.83 yuan, Baosteel, the country's biggest steel maker, gained 4.79 percent to 5.47 yuan as the country decided to scrap some steel export tariffs.
China Railway Group rose by the daily limit of 10 percent to 5.80 yuan as more railways and other projects were planned.
The country's Ministry of Housing and Urban-Rural Development pledged to launch a housing-guarantee investment plan worth up to 900 billion yuan.Vanke, the country's largest real estate company, rose 3.91 percent to 6.65 yuan. Poly Real Estate Group Co. closed 4.91 percent higher at 15.39 yuan.
(Xinhua News Agency November 13, 2008)
