Bargain hunters send shares up 0.46%

Chinese shares closed up 0.46 percent yesterday on bargain hunting following four consecutive days of losses for the key index, dealers said.

The benchmark Shanghai Composite Index closed up 14.97 points, or 0.46 percent, at 3,264.73 on turnover of 122.6 billion yuan ($18.0 billion).

The Shenzhen Component Index was up 163.46 points, or 1.26 percent, at 13,137.11 on turnover of 65.55 billion yuan ($9.4 billion).

Investors shrugged off today’s lower-than-expected industrial output and new yuan loans data after the key index shed about 6 percent in the previous four sessions due to worries over tightening credit conditions, traders said.

“July’s lending and industrial output data were lower than expected, but any negative impact they might have had was outweighed by the pressure for a technical rebound,” Shenyin and Wanguo analyst Qian Qimin said.

July’s value-added industrial production rose 10.8 percent from a year earlier compared with June’s 10.7 percent rise. Also, new yuan lending fell sharply to 355.9 billion yuan ($52 billion) in July from 1.53 trillion yuan ($223.8 billion) in June.

Agencies

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