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Stock markets up in response to stimulus package

The mainland and Hong Kong stock markets both rose Monday morning in response to the Chinese government’s US$586 billion fiscal stimulus package, Bloomberg reported. The CSI 300 Index, which tracks A-shares listed in Shanghai and Shenzhen, was up 3.1% to 1,729.31 points by 9.37am local time. Companies expected to gain from the infrastructure investment – such as cement maker Anhui Conch, China Railway Group and Sany Heavy Industry, which makes machinery for handling concrete – led the advance. Anhui Conch’s Hong Kong-listed shares also performed well, soaring 20% by mid-morning. Other fast-rising stocks included Aluminum Corp of China, ports builder China Communications Construction and China Railway Construction. The Hang Seng Index was up 5.5% to 15,022.22 by 10.23am local time, putting the index on course for its highest close since October 20.

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