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SHANGHAI: China stocks notched their highest close in three months on Wednesday as easing inflation worries and a strong yuan lifted risk appetite, although profit-taking pressured agricultural and electric-vehicle firms.

Rising for the third straight session, the Shanghai Composite index ended up 0.34% at 3,593.36, the highest closing level since February 25. The blue-chip CSI300 index was up 0.04%.

Leading gains, the real estate index rose 1.49% and the financial sector gained 0.52%. China Fortune Land Development Co advanced 4.3% while China Industrial Securities Co jumped by the daily limit of 10%.

The agriculture sector and the subindex tracking new-energy vehicle firms both lost 0.6%. Battery maker EVE Energy Co slumped 4.1%.

The smaller Shenzhen index ended down 0.06% and the start-up board ChiNext Composite index was 0.945% weaker.

China’s yuan extended gains to a near three-year high, helping ease the pressure from rising prices of imports, analysts said.

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