Shanghai shares rise over 1% on PBOC move and Premier Li's remark about investment

Investors buoyed after PBOC pumped in nearly US$9b in reverse repos and Li Keqiang said China will continue to invest in infrastructure.

Shanghai shares rose over 1 percent today as market sentiment was boosted by the Chinese central bank's liquidity injection and Premier Li Keqiang's remark about continuing investment in infrastructure.

The Shanghai Composite Index gained 1.14 percent to close at 2,730.85 points.

Shares of property developers, mining companies and consumer firms were among the biggest gainers.

Investors turned optimistic after Li said today that China will continue to invest in infrastructure at the annual meeting of the New Champions 2018, also known as Summer Davos, in Tianjin.

The premier added that China will further speed up the process of opening-up by reducing the tariffs on some imports as the country's overall tariffs continue to fall and gradually remove unreasonable charges on imports, according to a Xinhua report.

Investors were also cheered by the central bank’s injection of 60 billion yuan (US$8.76 billion) into the financial market through reverse repurchase agreements, according to a statement published on the People's Bank of China’s official website.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that the capital market has sufficient conditions to develop healthily. Fang said that the CSRC is confident that investors will get good returns investing in the Chinese market over the long term.

Nanjing Xinjiekou Department Store Co Ltd rose 5.72 percent to 11.46 yuan and Nacity Property Service Co Ltd added 4.83 percent to 22.80 yuan.

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