Chinese shares hit 11-month high

Chinese shares hit 11-month high
China's benchmark Shanghai stock index edged up Monday to a 11-month high, driven by financial shares after Premier Wen Jiabao reiterated that the country would maintain a pro-active fiscal policy and moderately ease monetary policy. The benchmark Shanghai Composite Index gained 15.81 points, or 0.55 percent, to close at 2,896.3, the highest close since July 28 last year. The Shenzhen Component Index, however, was down 51.58 points, or 0.46 percent, to end at 11,190.71 points. Total turnover was 220.66 billion yuan ($32.31 billion), slightly down from 232.58 billion yuan the previous trading day. Losers outnumbered gainers by 556 to 293 in Shanghai and 471 to 256 in Shenzhen. During a tour in northern China's Hebei province on Friday and Saturday, Premier Wen said the country's economy was at a critical moment as it had begun to recover "steadily", and the government should continue a proactive fiscal policy and moderately relaxed monetary policy, repeating his previous comments. Financial shares were also boosted by market talk that new loans would continue growing in June, bringing the total amount to more than 6 trillion yuan in the first half, far exceeding the full-year target of 5 trillion yuan, said the Bozhong Research Institute analyst Bai Taiping. The Industrial and Commercial Bank of China added 3.08 percent to 5.35 yuan. Bank of Nanjing shares jumped 7.91 percent to 17.19 yuan. Bank of Ningbo rose 6.55 percent to 12.69 yuan.