Chinese shares higher

Chinese share prices closed 4.58 percent higher on Friday as bargain hunters helped the market recover most of the previous day's sharp losses, dealers said. They said it was another volatile trading session as stocks climbed, fell and then rose again amid persistent liquidity fears sparked by a special treasury bond issue and plans to allow greater overseas investment.
"The sharp fall over the past two days left room for a technical rebound," said Shen Jun, an analyst with Shang Zhenglian consulting based in Shanghai. The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, jumped 165.48 points to 3,781.35 on turnover of 92.31 billion yuan (12.15 billion US dollars). The Shanghai A-share Index was up 173.75 points or 4.58 percent at 3,968.13 on turnover of 91.03 billion yuan and the Shenzhen A-share Index rose 53.36 points or 5.04 percent at 1,112.92 on turnover of 48.78 billion yuan.
Heavyweight financial stocks led the rebound after being battered on Thursday, with China Life Insurance up 2.60 yuan or 6.62 percent at 41.88 and Industrial and Commercial added 0.18 yuan or 3.61 percent to 5.16. Metals firms also gained strongly, with Aluminium Corp of China rebounding 1.05 yuan or 5.26 percent to 21.01.
The Shanghai B-share Index was up 10.36 points or 4.20 percent at 256.91 on turnover of 1.28 billion US dollars and the Shenzhen B-share Index rose 17.68 points or 2.69 percent at 675.19 on turnover of 1.03 billion Hong Kong dollars (133.77 million US dollars).