China shares surge 7.63 pct on policy support hopes

0 Comments | AFP, August, 2008

SHANGHAI (AFP) — Chinese share prices surged to close 7.63 percent higher on Wednesday amid renewed hopes that Beijing will soon act to support the ailing stock market, dealers said.

The key index initially fell as low as 2,306.66 points on lingering concerns over share supply glut, rising inflation pressures and a slowing economy.

But hopes on a near-term economic stimulus package from Beijing sparked a rally in Shanghai and aided other Asian markets despite an overnight decline in Wall Street.

The benchmark Shanghai Composite Index, which covers both A and B shares, was up 178.81 points at 2,523.28 on a turnover of 59.0 billion yuan (8.6 billion dollars).

The key index saw the biggest single day percentage gain since April 24 after the government...