China's stocks advance to six-month high

2012-12-28 10:03:25 GMT2012-12-28 18:03:25(Beijing Time)  Xinhua English

BEIJING, Dec. 28 (Xinhua) -- Chinese shares climbed Friday, driving the benchmark index to its highest level in six months, led by gains in the financial and property development sectors.

The benchmark Shanghai Composite Index gained 1.24 percent, or 27.36 points, to end at 2,233.25 points. The Shenzhen Component Index rose 0.98 percent, or 87.14 points, to 9,026.99 points.

Combined turnover on the Shanghai and Shenzhen bourses shrank to 177.25 billion yuan (28.13 billion U.S. dollars) from 199.18 billion yuan the previous trading day. Gainers outnumbered losers by 790 to 143 in Shanghai and by 1,220 to 241 in Shenzhen.

Citic Securities, China's biggest securities brokerage by asset value, brought the sector higher after the country's securities supervisor on Thursday eased rules covering the issuance of subordinated debt in an effort to improve securities firms' net capital and increase liquidity.

Citic Securities surged 7.87 percent to 13.16 yuan per share. China Merchants Securities gained 3.91 percent to 10.37 yuan, while Haitong Securities climbed 5.13 percent to 10.05 yuan.

Banks also performed well, with stocks rising across the board. The Commercial Bank of China, the country's largest lender by market value, added 1.23 percent to 4.1 yuan, while China Construction Bank was up 0.44 percent to 4.53 yuan.

Property sector shares continued to rise, as investors are betting that the country's urbanization initiative will drive up demand for urban homes. Poly Real Estate, the country's second-largest developer by sales, was up 2.09 percent to 13.16 yuan.

Share trading for China Vanke, the country's biggest property developer by sales, has been suspended in Shenzhen since Wednesday pending an announcement, the firm said late Tuesday.

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