Shanghai shares close at two-year high

Shanghai stocks rose to a two-year high yesterday as the banking, insurance and liquor sectors led the gains.

The Shanghai Composite Index climbed 0.87 percent to 3,474.75 points, the highest close since the end of 2015.

Industrial and Commercial Bank of China, the country’s biggest lender, rose 6.1 percent to 7.13 yuan (US$1.11), its highest level in 10 years. 

Ping An Insurance (Group) Co saw its share price up by 0.35 percent to 77.61 yuan.

Kweichow Moutai, China’s leading liquor maker, gained 0.38 percent to 750.74 yuan.

Guotai Junan Securities analyst Bao Yanxin was upbeat about the outlook of China’s building materials market. 

“Despite a slowdown in first-tier cities, demand from rural cities remains robust,” she said.

Meanwhile, a supply shortage of building materials is expected to bolster the industry’s performance in the long run and attract investor interest, she added.