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China stocks rebound over 1% Friday on positive data

China stocks rebound over 1% Friday on positive data

Write: Zoland [2011-05-20]

Chinese shares ended four consecutive days of losses and closed higher Friday, with the benchmark Shanghai Composite Index up 39.3 points, or 1.34 percent, to 2,967.41.

The Shenzhen Component Index rose 136.52 points, or 1.09 percent, to 12,699.42.

Combined turnover shrank to 203.08 billion yuan (about 31 billion U.S. dollars) from 222.66 billion yuan the previous trading day.

Gainers outnumbered losers by 760 to 129 in Shanghai and 997 to 208 in Shenzhen.

The China Federation of Logistics and Purchasing (CFLP) said Friday that the Purchasing Managers Index (PMI) of China's manufacturing sector rose to 53.4 percent in March after declining for three consecutive months, easing market concerns of an economic slowdown.

Heavyweights lead the buoyant market, with PetroChina Co., the country's largest oil producer, rising 0.84 percent to 12 yuan as crude oil prices on Thursday soared to nearly 107 dollars a barrel on the New York Mercantile Exchange.

But analysts warned that rising international commodity prices and the positive economic outlook was adding to the possibility of a new round of policy tightening, and there will likely be another interest rate hike in April.

Boosted by expectations of another rate hike, bank shares rose on Friday, with the Industrial Bank and Shanghai Pudong Development Bank up 5.54 percent and 3.82 percent to 30.3 yuan and 14.14 yuan, respectively.

Resource-related shares posted strong performances and lifted the market, with coal stocks up 4.34 percent.

Yanzhou Coal Mining Co., eastern China's largest coal producer, surged 7.16 percent to end at 36.97 yuan per share.