Shares rise to end at nearly 4-year high

Shanghai stocks yesterday rose for a third straight trading day to close at a 44-month high as investors pursued brokerages and banks.

The Shanghai Composite Index jumped 2.31 percent to 3,021.52 points.

Cinda Securities said the trading volume so far this year has fueled the profits of brokerages which became magnets for investors.

Analysts said investors were undaunted by yesterday's lower reading of 49.5 in the HSBC Flash China Manufacturing Purchasing Managers' Index in December from the final level of 50 last month. The reading also marked a seven-month low. Investors were prepared for the weak flash PMI due to other lackluster economic data that had been released by the central government a few days ago.

Southwest Securities, Everbright Securities, CITIC Securities and Pacific Securities all soared by the daily limit of 10 percent to 22.18 yuan (US$3.58), 28.44 yuan, 29.77 yuan and 14.39 yuan respectively.