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Stocks soar amid economic optimism
Aggregated Source: Shanghai Daily: Business

Shanghai stocks soared today, with the key index posting the biggest gain in more than two months.

This came as reports showed Chinese bankers and entrepreneurs are more optimistic over the country's economic recovery.

The key Shanghai Composite Index gained 2.66 percent, the biggest advance since January 14, to settle at 2,317.37 points.

Turnover was 114 billion yuan (US$18.4 billion) at the trading close.

An index measuring Chinese bankers' confidence over the country's economy rose to 72.2 percent in the first quarter, up 17.2 percentage points from the previous quarter, the People's Bank of China (PBOC) said in a report yesterday.

A separate report by the PBOC showed entrepreneurs' confidence index increased 7.6 percentage points to 68 percent.

Market sentiment was also buoyed by a prediction made by indicator expert Tom DeMark saying the Shanghai Composite Index will rebound after hitting a 2013 low this week and will achieve a 48 percent rally from December 4's level before September.

The index has gained 19 percent since it plunged to a four-year low of 1949 in December.

Lenders led the market up after a report by 21st Century Business Herald said the China Banking Regulatory Commission is considering scrapping a deposit target for banks, which would free up more capital.

China Minsheng Banking Corp rose 6.7 percent to 11 yuan. Industrial Bank Co jumped 6.4 percent to 20.08 yuan. China CITIC Bank Corp surged by the daily limit of 10 percent to 5.16 yuan.

Brokerages advanced following reports that China's securities regulator has scrapped the capital threshold of 500,000 yuan for investors to start short selling and margin trading.

CITIC Securities, the country's biggest listed brokerage, rose 6.2 percent to 13.45 yuan. China Merchants Securities Co leaped 7.7 percent to 13.91 yuan.

Haitong Securities Co climbed 6.9 percent to 11.59 yuan. Founder Securities increased 10 percent to 7.96 yuan.

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Copyright Shanghai Daily: Business