SHANGHAI stocks advanced for a second straight day today after Beijing policy makers expressed confidence in the world's second-biggest economy and called for a healthy growth.
The Shanghai Composite Index jumped 1.21 percent, the most in two weeks, to 2,251.81 points, led by financials and property developers.
"It is worth watching the market reaction to comments by Chinese policy makers. President Xi Jinping said China's economy is in 'good' shape while Vice Premier Zhang Dejiang said no approval will be made for investment in a range of heavy industries. The remarks suggest that Beijing is fairly comfortable with a somewhat slower growth pace and will not introduce any major stimulus," said Dariusz Kowalczyk, senior economist at Credit Agricole in Hong Kong, in a note today.
All financial stocks rallied. Haitong Securities rose 3.7 percent to 11.03 yuan. New China Life Insurance Co surged 4.4 percent to 24.39 yuan. ICBC, the world's biggest lender, added 0.7 percent to 4.09 yuan.
Property developers advanced. China's second-biggest developer, Poly Real Estate Group Co, climbed 4.3 percent to 12.07 yuan. Shanghai Xinmei Real Estate Co, increased 4.1 percent to 5.58 yuan. Shanghai Lujiazui Finance & Trade Zone Development Co gained 2.3 percent to 11.97 yuan.