China stocks rise 3 pct, real estate surges

Published: 13 Feb 2009 01:30:29 PST

SHANGHAI, Feb 13 - China's main stock index rose more than 3 percent to a new four-month high in very heavy trade on Friday as buyers switched into the real estate sector.

With 20 minutes of trade left, the Shanghai Composite Index <.SSEC> climbed as much as 3.03 percent to 2,316.248 points.

Vanke <000002.SZ>, China's biggest listed property developer, was up 5.05 percent at 8.53 yuan. Traders said there were rumours that after announcing stimulus packages for several industrial sectors, the government might soon come up with one for property.

But major technical resistance for the index lies at 2,333 points, the late September high, and analysts expect profit-taking pressure to increase at that level. ($1 = 6.83 Yuan)