Chinese shares jumped 4.26 percent to close at their highest level in two years on Friday as reports that Beijing might take steps to cool the property market sparked a fresh inflow of money into large-caps such as Sinopec Corp.
The benchmark Shanghai composite index finished at 1,602.832 points, its highest closing level since June 12, 2004. Top Asian oil refiner Sinopec, the largest capitalised stock on the mainland's Shanghai and Shenzhen stock exchanges, closed up 9.49 percent to 7.04 yuan and was one of Friday's most active issues.
The stock has jumped 51 percent since the start of this year, buoyed by its strong earnings and investor speculation that soaring oil prices would help the firm's bottom line.
The benchmark index has now jumped 38 percent since the start of this year, buoyed mainly by Beijing's market-friendly steps, including encouraging greater participation by mutual funds.
It has quickened its gains recently, advancing 11 percent this week alone, after regulators lifted the year-long suspension on stock fund-raising and promised to give quality companies priority to float shares.
Among other index heavyweights, Sinochem International Corp, a unit of state oil trader Sinochem Corp, closed up its 10 percent daily limit to 5.27 yuan on Friday, the second day it had hit its daily upper limit.
Chinese telecommunications gear maker Nanjing Panda Electronic Co Ltd also jumped its 10 percent limit to close at 6.00 yuan after it said it had agreed to take a 25 percent stake in a Chinese TV tube maker.
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