China shares rise with Shanghai composite index closing at two-month high

China shares gained today, with the key Shanghai share index closing at a two-month high. 

The Shanghai Composite Index added 0.64 percent to a new high of 3,213.84 today.

The Shenzhen Component Index rose 0.87 percent to close at 10,765.35 points, and the Nasdaq-style ChiNext enterprise board advanced 1.40 percent to 1,862.48.

Shares of chemical and environment protection companies rose strongly.

Shares of Pengyao Group, a Jiangsu-based water treatment enterprise, surged by the daily maximum cap of 10 percent to close at 25.47 yuan (US$3.99) per share today as the company rode on the news that President Xi Jinping told a national conference last week that China would fight against pollution and push ecological civilization to a new level.

Market sentiment has also risen due to the softening Sino-US trade tension and the coming inclusion of A-shares into the MSCI index this week, according to analysts.