SHANGHAI Feb 16 China stocks posted modest
gains on Thursday as higher commodity prices and infrastructure
spending continued to boost shares of firms in the materials
The blue-chip CSI300 index rose 0.6 percent to
3,440.93 points, while the Shanghai Composite Index
added 0.5 percent to 3,229.62.
Most sectors rose, led by a 1.6 percent gain in materials
shares, taking its gain to 10 percent so far this
China's high-profile "One Belt, One Road" initiative to link
markets from Asia to Europe and its accelerated infrastructure
investment at home have boosted demand for building-related
resources and raw materials, including steel, cement and base
metals, said He Jing, an analyst at Northeast Securities.
An index tracking China's major non-ferrous metals
added as much as 2.8 percent to hit a fresh
two-month high, while an index tracking coal miners
gained 2.2 percent.
Shares in China Molybdenum soared by their 10
percent trading limit to a more than seven-month high. The stock
has gained some 20 percent in the last month alone, and more
than 30 percent over the past year on stronger demand for
high-strength steel alloys.
But there are concerns that China's commodities futures
prices have climbed too quickly, possibly propelled more by
speculation than a sustainable increase in real demand.
China's iron ore futures have risen some 27 percent so far
this year, while prices for steel reinforcement bars have gained
China should prudently manage the country's debt
deleveraging process and seek to avoid a liquidity crisis and
asset bubbles, according to a central bank working paper
published on Wednesday, easing concerns over liquidity stress in
the country's financial systems.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Kim