Chinese stocks reached a 10-month high on Wednesday, driven upwards by high hopes about an economic recovery and a strong performance by Hong Kong-listed equities, the Wall Street Journal reported. The Shanghai Composite Index (SCI) closed up 2% at 2778.59 points, its highest level since August 1, 2008. The Shenzhen Composite Index rose by 1.5% to 920.82. The rise was lead by banks and resource companies with Shanghai Pudong Development Bank hitting the 10% daily maximum and China Merchants Bank closing up 7.1%. Zhongjin Gold also reached the 10% ceiling while Zijin Mining posted a gain of 4.2%, having risen 16% since the start of the week. Analysts said the Shanghai index’s upward rise could be halted when the rules for initial public offerings (IPOs) are finalized and intial public offerings, which have been frozen since September of last year, resume. Hong Kong’s Hang Seng Index closed up 1% at 18,576.47 as property stocks soared in response to rising housing sales.
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