China stocks rise, buoyed by global markets

(For Hong Kong stock market reports, click [.HK])

SHANGHAI, Jan 5 (Reuters) - China's stock market rose nearly 2 percent on Monday after the New Year holidays, propelled by gains on global markets, including Hong Kong.

The China market was closed on Thursday and Friday for the New Year break.

The benchmark Shanghai Composite Index .SSEC was up 1.70 percent at 1,851.706 points by 0136 GMT from the close of Wednesday, also buoyed by technical buying.

China's share market ended 2008 with an annual loss of 65 percent, which made it the world's worst-performing major stock market for the year.

Despite Monday's strong start, analysts said the potential for the market to rise sharply soon would be limited, partly because earnings of the country's 1,600-plus listed firms were almost certain to fall in 2009, hit by the slowing economy.

The official China Securities Journal said the index was likely to move between 1,300 and 2,600 points in 2009. ($1 = 6.82 yuan) (Reporting by Lu Jianxin, Editing by Jacqueline Wong)