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Guidelines on income help shares end higher

2013-02-07 08:42 Shanghai Daily     Web Editor: qindexing comment

Shanghai stocks extended a winning streak for an eighth session when the key index edged up yesterday on hopes the central government's guidelines on income distribution will boost domestic consumption.

The Shanghai Composite Index added 0.06 percent to end at 2,434.48 points, the highest since May 8. The eight-day win streak is the longest since the period through February 28.

The State Council, China's Cabinet, issued guidelines seeking to deepen reform of China's wealth distribution system to narrow income disparities between urban and rural residents. The reform also aims to double the per capita income of the two groups by 2020 from the level in 2010.

"The guidelines will benefit the A-share market in the long term," CITIC Securities, China's biggest listed brokerage, said in a report. "The guidelines seek to improve public services, which will boost investment in projects related to health care, education, old-age care and low-cost housing."

The market also rose amid optimism of more liquidity.

Brokerages rose on hopes a stock rebound will boost their profitability. CITIC Securities gained 1.4 percent to 15.32 yuan (US$2.46). Haitong Securities rose 3.5 percent to 12.75 yuan, and Founder Securities added 1.4 percent to 6.45 yuan.

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