Building materials help index end higher

Source: Xinhua | 2017-02-23

SHANGHAI stocks yesterday rose for the third straight day to a three-month high as construction material companies were bolstered by China’s plan to expand infrastructure construction.

The Shanghai Composite Index added 0.24 percent to 3,261.22 points.

Sales in the construction sector have rebounded as government infrastructure spending jumped 17.4 percent to 11.9 trillion yuan (US$1.7 trillion) last year, said Qu Wei, an analyst at Shenwan Hongyuan Securities.

“The outlook is also optimistic” given that at least 40 trillion yuan will be invested in infrastructure construction according to plans from 23 provinces, Qu added.

China’s top economic planner approved 18 large fixed-asset investment projects with investment totaling 153.9 billion yuan last month, amid efforts to stabilize economic growth by boosting infrastructure investment.

Zhejiang Jianfeng Group Co, a state-owned cement producer, jumped by the daily limit of 10 percent to 19.31 yuan, as did Fujian Cement Inc to 14.27 yuan.