Stocks surge back after steady losses

Shanghai stocks rebounded yesterday to post their biggest daily gain since May 2016, led by infrastructure and property companies and rebounding from Monday's two-and-a-half-year low.

The turnaround also followed falls in four straight sessions,

The Shanghai Composite Index surged 2.74 percent to close at 2,779.37 points. Infrastructure shares such as Ningbo Construction Co, China Railway Construction Corporation and China Communications Construction Co all surged by the daily limit of 10 percent.

China Railway Corporation said yesterday that the fixed-asset investment in railways will bounce back to more than 800 billion yuan (US$117.25 billion) in 2018, compared with the previously forecast 732 billion yuan.

Petroleum and petrochemical firms were also big gainers, with Sichuan Tianyi Science & Technology Co hitting the 10 percent cap, and Zhongman Petroleum and Natural Gas Group Corp and HY Energy Group Co both up by over 6 percent.

Iron and steel stocks such as Silvery Dragon Prestressed Materials Co and HangZhou Iron And Steel Co both posted gains of over 6 percent.