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China stocks surge 3.2% to five-month high

(Agencies)
Updated: 2009-02-13 15:56

China's main stock index surged 3.23 percent to a five-month closing high in very heavy trade on Friday as speculative money continued to pour into the market. The real estate sector was particularly strong.

The Shanghai Composite Index SSEC rose sharply in the late afternoon to end at 2,320.792 points, just off the day's high of 2,323.120. That brought its rise so far this year to 27 percent.

Vanke, China's biggest listed property developer, jumped 5.30 percent to 8.55 yuan. Traders said there were rumours that after announcing stimulus packages for several industrial sectors, the government might soon come up with one for property.

But major technical resistance for the index lies at 2,333 points, the late September high, and analysts expect profit-taking pressure to increase at that level.