Shanghai shares yesterday rallied for the second day amid expectation of measures to boost the economy ahead of the legislative meetings this week.
The Shanghai Composite Index surged 4.26 percent to 2,849.68 points, the biggest gain since November 4.
“There are policy expectations from the National People’s Congress meetings, such as growth-stabilizing measures, so the market showed signs of consolidating at this level,” said Wang Zheng, the Shanghai-based chief investment officer at Jingxi Investment.
The annual NPC meetings, where delegates will sign off on a new five-year economic plan, will begin today.
It will discuss strategies to deal with current economic problems and economic development, according to Wang Guoqing, spokesman for the annual session of the Chinese political advisory body.
Of the 70 real estate companies listed in Shanghai, 15 jumped by the 10 percent daily limit, with Poly Real Estate Group, the largest state-owned developer in China, advancing 10 percent to 10.43 yuan (US$1.59).
Anhui Conch Cement Co, the nation’s biggest producer of building materials, soared 10 percent to 15.96 yuan. Wuhan Iron and Steel Co rose 7.32 percent to 3.08 yuan.