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Friday, August 28, 2015, 15:14

China stocks climb, Shanghai up 4.8%

By Agencies

China stocks climb, Shanghai up 4.8%

BEIJING - Chinese stocks continued recovery on Friday with the benchmark Shanghai Composite Index climbing 4.82 percent to close at 3,232.35 points, following a 5.34 percent increase on the previous day.

The Shenzhen Component Index added 5.32 percent to close at 10,800 points. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 6.26 percent to close at 2,082.12.

After a fresh bout of heavy selling early in the week, market sentiment in China appears to be calming down.

China's central bank cut interest rates and banks' reserve requirements late on Tuesday, and the government has moved to put more money into the market in addition to the billions it mobilised in early summer to avert a full-blown market crash.

Foreign interest in China shares also seems to be slowly reviving after the plunge left valuations more attractive. Money is flowing into the country again via the Shanghai-Hong Kong Connect scheme.

On Friday, respected financial magazine Caixin reported that China's state margin lender has applied for one-year loan from banks worth about 1.4 trillion yuan (US$219.03 billion) to fund potential stock purchases.

China also announced that local pensions funds will start investing 2 trillion yuan (US$313.05 billion) as soon as possible in stocks and other assets.

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