China shares hit two-month high

The Shanghai Composite Index (SCI) hit a two-month high on Wednesday as concerns about monetary tightening eased, Dow Jones reported. The SCI gained 0.9% to close at 2,923.90 points, buoyed by strong performances from auto and steel manufacturers. The Shenzhen Composite Index closed up 1.7% at 1,283.26. The auto makers’ charge was led by CNHTC Jinan Truck (000951.SH), which announced that January sales climbed 74% year-on-year. Steel makers gained in anticipation of higher prices after Baoshan Iron & Steel (600019.SH) raising prices for its steel products for March delivery. Fangda Special Steel (600507.SH) performed particularly well, having reported a nine-fold increase in 2010 net profit. Analysts expect the trend to continue, at least in the short term. "The upward trend remains intact due to easing tightening concerns and improved liquidity," said Zhang Xiang, an analyst at Guodu Securities.