SHANGHAI shares rose for a second day yesterday, with insurers and lenders leading gains.
The benchmark Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, closed at 3,915.99 after reaching an intraday high of 3,925.60, a rise of 1.3 percent. Turnover hit 71.68 billion yuan (US$9.31 billion), against 63.65 billion yuan on Wednesday.
"The index continued to fluctuate in a narrow range as it is still unclear whether any macro-control measures will be announced soon," said Dai Ming, an analyst with Kingsun Investment Management Co. "The shrinking transaction value over the past two days was also due to investors showing uncertainty."
In fact the transaction value on Wednesday of 63.65 billion yuan was probably the lowest since mid February.
Finance shares maintained their strong momentum, with insurers and lenders among major gainers.
China Life, the nation's biggest insurer, rose 4.5 percent to 46.17 yuan while Ping An Insurance, the second-largest, climbed 3.9 percent to 79.90 yuan.
Speculation that insurers will be allowed to double their investment in local equities to 10 percent might have helped the insurers to gain, market observers said.
Meanwhile, banks advanced on faster-than-expected loan growth.
China Minsheng Banking Corp, the country's first privately-owned bank jumped 2.5 percent to 12.22 yuan while Industrial Bank Co rose 3.4 percent to 37.94 yuan. China Merchants Bank, the nation's seventh-largest lender, added 0.76 percent to 27.69 yuan.
China Petroleum & Chemical Corp, Asia's largest refiner, soared 5.19 percent to 13.37 yuan.
Ma Long, an analyst with Huatai Securities, advised investors to look out for two major forces which may influence the stock market - listed firms' rosy interim reports and possible measures by the central government.