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Equities edge up on stimulus assurances

(China Daily/Agencies)
Updated: 2009-12-01 08:02

Chinese stocks rose, rebounding from the biggest weekly loss in three months, after the government pledged to maintain stimulus policies next year.

Consumer-related companies led the gains. Suning Appliance Co, the nation's biggest home appliance retailer, and Kweichow Moutai Co, the largest producer of spirits by market value, surged more than?five percent.

The Shanghai Composite Index added 99.04, or 3.2 percent, to 3195.3 at the close, the biggest gain since Oct 9 and capping a third monthly advance. The measure plunged 6.4 percent last week on concern banks will sell shares to replenish capital depleted by record loan growth. The CSI 300 Index gained 3.8 percent to 3511.67 yesterday.

"Investors are relieved that the focus hasn't changed and the emphasis is still on promoting growth and domestic consumption," said Michelle Qi, Shanghai-based portfolio manager at Bank of Communications Schroders Fund Management Co, which oversees about $6.5 billion.

Indexes tracking consumer staple and discretionary companies on the CSI 300 jumped more than five percent yesterday.

Brokerages surged after the Shanghai Securities News cited a Shanghai Stock Exchange official saying conditions are "ripe" for the introduction of stock-index futures.

CITIC Securities Co increased 6.9 percent to 29.19 yuan. Haitong Securities Co advanced 10 percent to 16.06 yuan and Northeast Securities Co climbed 5.8 percent to 39.5 yuan.