Money

China stocks end at 2-wk high

(Agencies)
Updated: 2010-07-12 16:09

China's key stock index ended 0.8 percent higher on Monday at a two-week high, led by banks and property shares, as investors were upbeat China could shift to a more neutral stance in the second half year on policy tightening.

The Shanghai Composite Index rose to 2,490.7 points, hovering around the tough psychological 2,500-point level, which analysts said could trigger strong upward momentum when breached.

Related readings:  China shares rise 2.3% on Friday  Chinese equities dip 0.25% on Thursday  Chinese shares rise slightly Wednesday  Chinese shares advance the most in two weeks Tuesday

Shanghai's stock market, one of the world's worst performers, has lost about a quarter of its value since the start of the year, second only to Greece, after Beijing introduced a range of measures to cool speculation in the red-hot property sector.

"The optimistic news boosted the market, but we are still taking a cautious attitude as the Chinese economy may slow down in the second half of the year," said Zhang Yanbing, analyst at Zheshang Securities in Shanghai.

Volume fell slightly to 81 billion yuan ($11.96 billion) versus 82 billion yuan on Friday.

Insurance companies fell on news that the industry regulator planned to lift the rate cap on life insurance products, a move that could potentially result in higher costs for insurance companies.