Money

China stocks rise on unchanged monetary policy

(Xinhua)
Updated: 2010-08-06 16:29

BEIJING -?Chinese shares rose Friday after the central bank announced late Thursday plans to maintain its moderately loose monetary policy and enhance financial supports to boost sustainable economic development.

Shares of travel-related businesses led gains. Bank shares also rose broadly in Friday's trading.

The benchmark Shanghai Composite Index closed at 2,658.39 points, up 37.63 points, or 1.44 percent.

Related readings:  PBOC to continue moderately loose monetary policy  China's stocks fall on Thursday  Chinese stocks rise, led by automakers, gold producers  Benchmark sees biggest loss in two weeks

The Shenzhen Component Index ended at 10,942.93 points, up 174.86 points, or 1.62 percent.

Total turnover slightly expanded to 236.62 billion yuan ($34.8 billion) from 216.33 billion yuan the previous trading day.

Gainers outnumbered losers by 830 to 44 in Shanghai and 963 to 62 in Shenzhen.

China's central bank, the People's Bank of China, said Thursday evening in a statement on its website that the country's moderately loose monetary policy would be maintained.

It also urged a balance between meeting the need of funding economic development and managing inflation expectations.

Bank shares rose across the board. The Bank of Communications rose 2.51 percent to 6.54 yuan. Huaxia Bank gained 2.21 percent to 12.04 yuan. China's biggest lender, the Industrial and Commercial Bank of China, edged up 0.71 percent to 4.26 yuan.

Shares of travel-related businesses and hotels led gains in Friday's trading as more people around the country are taking holidays in the summer heat.

Lijiang Yulong Tourism Co Ltd jumped 9.98 percent to 23.03 yuan. China CYTS Tours Holding Co Ltd gained 3.25 percent to 17.18 yuan. China International Travel Service Corp Ltd also rose 2.02 percent to 24.27 yuan.