SHANGHAI stocks yesterday rose for a second day to a seven-month high as market sentiment improved amid a recovery in corporate profitability and high hopes for government reforms.
The Shanghai Composite Index added 0.6 percent to 2,325.68 points, the highest close since June 1.
"Expectations over the market outlook have improved as corporate profitability is recovering with an economy that is stabilizing," Industrial Securities said in a report. "The downward risk to market valuation has also waned after more than three years of adjustment since 2009."
The government's determination to propel reforms also helped ease concerns about China's long-term economic growth, the brokerage said.
The China Securities Regulatory Commission's moves to ease the market's liquidity pressure helped. It said six firms have halted their filings for initial public offerings after the CSRC requested a review of financial statements of IPO applicants.
Environment-related stocks rose after Vice Premier Li Keqiang urged that efforts in environment protection be strengthened.
Beijing Capital Co, a sewage treatment firm, jumped 5.2 percent to 4.64 yuan. Tianjin Capital Environmental Protection Group rose by the daily limit of 10 percent to close at 5.36 yuan.
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