Banks help shares end higher

Bank shares pushed Shanghai stocks to close higher yesterday despite profit taking in brokerages.

The Shanghai Composite Index added 0.61 percent to 3,127.44 points, the highest close since it hit 3,147.74 on November 11, 2010.

Northeast Securities said the increased trading volume of 624.48 billion yuan (US$100.4 billion) also helped the index to gain.

The central government on Saturday unveiled changes to rules governing foreign banks. Starting January 1, curbs on the entry of foreign banks to the Chinese mainland will be cut.

Their entry is expected to spur vigor in the sector and help raise the service of domestic banks amid more competition, analysts said.

The Bank of China surged 9.89 percent to 3.89 yuan, and the Agricultural Bank of China rose 9.88 percent to 3.56 yuan. China Minsheng Banking Corp rose 9.14 percent to 10.51 yuan. China Construction Bank gained 8.21 percent to 6.59 yuan.