SHANGHAI Feb 21 China stocks extended gains on
Tuesday to close at a near three-month high, as expectations for
big flows into stock markets from pension funds continued to
improve risk appetite.
The blue-chip CSI300 index rose 0.3 percent, to
3,482.82 points, while the Shanghai Composite Index
added 0.4 percent to 3,253.33 points, its highest close since
The tech-heavy start-up index ChiNex climbed 1.4
percent to a 5-week high.
"Pension funds will be the biggest source of incremental
capital in the near future, and they would surely pick shares of
industry bellwethers and consequently boost the blue-chips,"
said Tian Weidong, a Xi'an-based analyst with Kaiyuan
Sentiment was also lifted by news that many listed companies
scrapped or revised their plans for the private placement of
shares, after regulators introduced policies to check
The new policy is widely seen as encouraging more initial
public offerings to help grow investment in the economy.
More IPOs in theory would boost demand for blue-chips, as
investors have to own stocks in order to subscribe to shares in
newly-listed companies, and they usually prefer blue-chips for
Most sectors edged higher. Gains were led by real estate
and material shares.
Shanghai Bailian Group rose by its 10 percent
trade limit for the second session, while Yonghui Superstores
also shot up 10 percent to a 16-month high, after
Alibaba Group said it formed a strategic partnership
with Bailian Group, boosting appetite for shares in listed
(Reporting by Luoyan Liu and John Ruwitch; Editing by Sam