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Thursday, October 8, 2015, 15:21

Shanghai climbs 2.97% up

By Agencies
Shanghai climbs 2.97% up
An investor at a brokerage house in Fuyang city, East China's Anhui province, Oct 8, 2015. (Asianewsphoto by Lu Qijian)

BEIJING - Chinese shares closed higher on Thursday, with the benchmark Shanghai Composite Index up 2.97 percent to end at 3,143.36 points.

The Shenzhen Component Index surged 4.07 percent to close at 10,394.73 points. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 5.17 percent to close at 2,190.31 points.

Chinese stocks opened higher Thursday after the market was closed for seven days for the National Day holidays.

The benchmark Shanghai Composite Index surged 3.38 percent to open at 3,156.07 points.

The Shenzhen Component Index opened 3.44 percent higher at 10,332.24 points. The ChiNext Index opened 3.38 percent higher at 2,153.12 points.

China's "rally is partly driven by the positive economic data released over the holiday break, such as a slightly better than expected official manufacturing" index, said Gerry Alfonso, trading director at Shenwan Hongyuan Securities in Beijing. "There are also some technical reasons for the rebound as investors are likely to start rebuilding portfolios after reducing positions before the holidays," he said. "Investors seem to be hunting for bargains in these initial trading moments."

While Chinese markets were closed for the Oct 1-7 National Day holiday, Hong Kong stocks jumped 8 percent, the Dow Jones Industrial Average rose nearly 4 percent and global oil prices enjoyed a robust rebound, boosting shares of resource companies.

Although Thursday's trading volume in Shanghai jumped by 60 percent from the previous session to 23.35 million shares, it was still just a quarter of its early-June peak, just before Chinese markets began a nosedive of some 40 percent.

Chinese stocks rose across the board, with the CSI300 IT Index leading gains with a 5.4 percent jump.

The CSI300 Health Care Index was also up sharply, rising nearly 5 percent, after the government said that it would invest 9.8 billion yuan (US$1.54 billion) to subsidise public hospital reform next year.

The rise in the sector was also aided by news that Chinese medical scientist Tu Youyou became the first Nobel laureate in medicine, prompting a batch of Chinese herbal medicine makers, including Conba, Zhongxin Pharmaceutical and Baiyunshan to jump their 10 percent daily limit.

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