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Chinese shares rebound above 2,600 points on govn't stimulus
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Chinese shares rose 1.49 percent Tuesday as investors reacted positively to figures on fixed-asset investment, which were taken as evidence that government stimulus spending was buoying the economy, analysts said.

The benchmark Shanghai Composite Index closed at 2,618.17 points, up 38.43 points. The Shenzhen Component Index rose 3.14 percent, or 310.36 points, to 10,179.15.

Gains outnumbered losses by 722 to 79 in Shanghai and 610 to 68 in Shenzhen.

Combined turnover contracted to 176.3 billion yuan (25.85 billion U.S. dollars) from 264.4 billion yuan on Monday.

Urban fixed-asset investment in the first four months rose 30.5 percent year on year to 3.71 trillion yuan, the National Bureau of Statistics announced Tuesday.

The growth rate was 1.9 percentage points higher than in the first quarter.

The surge in fixed-asset investment showed the country's decision to increase spending to stimulate domestic demand worked, analysts said.

(Xinhua News Agency May 12, 2009)

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