SHANGHAI Feb 9 Shanghai stocks closed at a
two-month high on Thursday, getting a boost from glass and
cement makers after the government signalled it would reduce
overcapacity in the construction materials sector.
The blue-chip CSI300 index rose 0.4 percent, to
3,396.29 points, while the Shanghai Composite Index
added 0.5 percent to 3,183.18 points.
Cao Xuefeng, head of research at Huaxi Securities in
Chengdu, said regulatory signals to cut overcapacity among
construction materials makers had lifted related stocks.
State media reported on Wednesday that Xu Lejiang, deputy
head of the Ministry of Industry and Information Technology,
said China would step up supply-side reforms in the construction
Supply-side reforms were seen as the main driver behind the
dramatic rally of many steel makers and coal miners last year,
as less supply could push prices higher and improve listed
Many stocks related to the high-profile "One Belt, One Road"
theme rallied strongly, after the country pledged to further
push forward the initiative. SSE One Belt One Road Index
gained 1.1 percent to its highest since Dec. 2.
Sentiment was also lifted as many small-cap stocks rebounded
from recent lows. The tech-heavy start-up index ChiNext
advanced 0.6 percent to a near one-month high.
Most sectors gained ground. Gains were led by real estate
and infrastructure plays.
(Reporting by Luoyan Liu and John Ruwitch; Editing by