Shanghai shares end higher

Central government encourages private funds to invest in the telecommunication sector while the Chinese central bank  boosts liquidity in the financial market.

Shanghai stocks closed up today as the central government encouraged private funds to invest in the telecommunication sector and also on the Chinese central bank's efforts to boost liquidity in the financial market.

The Shanghai Composite Index edged up 0.28 percent to close at 3,392.40 points.

Telecommunication firms, electronics companies and banking shares were among the biggest gainers today. The telecom sector jumped 3.01 percent today, according to data from financial data provider Wind Information Co.

The Ministry of Industry and Information Technology and other ministries today released a guideline which encourages private funds to invest as part of efforts to boost industrial upgrading and transformation of China's manufacturing industry.

The guideline envisions that private funds will invest in the telecom sector amid the government's continuing development of the sector.

Sentiment also rose after the People’s Bank of China injected 100 billion yuan (US$15.07 billion) into the financial market through reverse repurchase agreements today, according to a statement published on its official website.

China Securities advised investors in a note to buy shares of telecom, intelligent manufacturing and semiconductor companies.

Guangdong Super Telecom Co Ltd surged by the daily limit of 10 percent to 55.34 yuan (US$8.34), Wuhan Yangtze Communication Industry Group Co Ltd jumped 6.02 percent to 30.46 yuan and China Merchants Bank Co Ltd added 3.91 percent to 30.53 yuan.


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