Chinese stocks rebound more than 1.2% Friday
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Chinese shares recovered more than 1.2 percent Friday as bargain-hunters snapped up stocks on speculation that the government would not introduce more tightening measures amid the economic slowdown.
The benchmark Shanghai Composite Index extended its early gains and climbed back over the key 2,600 mark to close at 2,606.7 points, up 31.22 points, or 1.21 percent.
Friday's gain capped this week's trading with a loss of 1.94 percent for the Shanghai stock market.
The Shenzhen Component Index rebounded sharply by 206.55 points, or 1.93 percent, to close at 10,886.57 points, driven up by heavyweight Vanke Property.
The index posted a moderate loss of 0.52 percent this week due to the strong performance of the property sector.
Combined turnover on the Shanghai and Shenzhen exchanges shrank to 175.55 billion yuan (25.8 billion U.S. dollars) from Thursday's 191.91 billion yuan (28.3 billion U.S. dollars).
Gainers outnumbered decliners by 813 to 59 in Shanghai and by 943 to 74 in Shenzhen, with 88 stocks remaining unchanged at both markets.
Property companies were the major source for Friday's rebound as investors speculated the government would not further tighten lending and dampen the housing market amid economic slowdown.
Zhu Zhongyi, vice president of the China Real Estate Association, confirmed Friday the association had submitted a report to the State Council, China's Cabinet, to lobby for the suspension of further real estate tightening measures.
Vanke Property, China's largest house developer by market value, surged 4.49 percent to 8.84 yuan, a new high since July. China Merchants Property, another housing giant, also advanced 4.53 percent to 20.3 yuan.
Energy companies rose as oil prices climbed above 76 U.S. dollars a barrel in Asia. PetroChina, the market's largest stock by market value, added 0.58 percent to 10.32 yuan. Sinopec, China's largest refiner, rose 1.47 percent to 8.3 yuan.
Share prices of smart power grid companies were stronger amid reports that the State Grid Corp of China, the country's major power grid operator,would build a network of ultra-high-voltage power transmission lines by 2020 with an estimated investment of 270 billion yuan (39.68 billion U.S. dollars).
Smart power grid company Northeast Electric surged 10 percent to close at 4.84 yuan. YH Tech also capped the up-limit by soaring 10 percent to 5.47 yuan. (1 U.S. dollar = 6.8045 yuan)
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