Chinese shares close higher on new RQFII guideline

BY    2013-05-05 10:16:42

  BEIJING, May 3 (Xinhua) -- Chinese shares closed higher on Friday, as investors expect that a new technical guideline will attract greater foreign investment in China.

  The benchmark Shanghai Composite Index surged 1.44 percent, or 31.37 points, to end at 2,205.50, while the Shenzhen Component Index moved up 1.49 percent, or 129.48 points, to 8,847.67.

  Combined turnover on the two bourses expanded to 163.07 billion yuan (26.3 billion U.S. dollars) from 121.8 billion yuan the previous trading day.

  The People's Bank of China (PBOC), China's central bank, on Thursday unveiled a technical guideline for the implementation of the Renminbi Qualified Foreign Institutional Investor (RQFII) pilot program.

  The new RQFII guideline applies to foreign investors' yuan-denominated activity in the mainland's equity markets. It marks a further step for China in opening its capital markets and promoting the yuan's overseas use.

  The medical device sector rose the most, increasing by 3.62 percent. Andon Health Co., Ltd. climbed by the daily limit of 10 percent.

  The papermaking sector expanded 2.87 percent. Xinjiang Tianhong Papermaking Co., Ltd. also gained by the 10-percent daily limit.

  The ChiNext Index, which tracks China's NASDAQ-style board for growth enterprises, surged 2.80 percent.

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