China stocks jump on commodity shares

Beijing - China stocks jump on commodity sharesStocks in mainland China rose sharply Monday, led by commodity-related shares as the prices of raw materials rose and demand for them was expected to continue to go up as well.

The CSI 300 Index, which tracks yuan-denominated A shares listed on the mainland's two exchanges, rose 195.12 points, or 5.34 per cent, to close at 3,845.82.

The Shanghai Composite index was up 153.37 points, or 4.45 per cent, to 3,599.62 while the Shenzhen Composite Index gained 61.73 points, or 6.14 per cent, to end at
1,067.62.

Steel shares were among the biggest gainers. Baosteel, China's largest steelmaker, saw a 5.47-per-cent gain, while Chinalco, China's biggest aluminium producer, rose the maximum of 10 per cent for the second day in a row.

Securities shares were also among the largest winners as traders told the official Xinhua news agency that their rise might mark an increase in confidence in China's stock markets.

The two exchanges have taken a bumpy ride lately with the Shanghai index losing more than 30 per cent of its value so far in 2008 as it rides the fallout from the US subprime mortgage crisis, the government's tightening of its monetary policies and fears of a market bubble. (dpa)

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