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Chinese shares up 1% as recovery signs boost confidence

(Xinhua/Agencies)
Updated: 2009-02-02 17:43

Chinese shares rose Monday as government promises of more farm aid boosted agriculture stocks in the first trading day after the weeklong Lunar New Year holiday.

 The benchmark Shanghai Composite Index jumped 1.1 percent, or 21.03 points, to close at 2011.68. The Shenzhen Composite Index for China's second exchange climbed 2.1 percent to 623.01.

Combined turnover was 94.95 billion yuan, slightly down from 95.27 billion yuan on the previous trading day of January 23.

The government said Sunday it will spend more on farm subsidies and aid to China's poor countryside.

Total loans of Chinese banks hit 900 billion yuan ($130 billion) in the first 20 days of January, up 12 percent year-on-year, Premier Wen Jiabao told the World Economic Forum in Davos, Switzerland, which ended Sunday.

The figure also convinced some investors that China's economic growth could pick up this year, analysts said.