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  Chinese shares up 1.95% on bargain hunting
  2008-07-04 09:26:00
   
  Chinese shares closed higher on Thursday as bargain hunters took advantage of a fall in the key index at the beginning of the morning session.

The benchmark Shanghai Composite Index, which covers both A and B shares, gained 51.8 points, or 1.95 percent, to close at 2,703.53.

The Shenzhen Component Index rose 236.03 points or 2.58 percent to stand at 9,398.17.

The market lost nearly 3.2 percent to hit a 15-month low of 2,566.53 shortly after the opening, dragged down by heavyweights, as investors reacted warily to a weak close on Wall Street overnight. The Dow Jones Industrial Average fell 166.75, or 1.46 percent, to 11,215.51 on Wednesday, as oil prices hit a new record.

However, Chinese shares snapped back as investors took advantage of low valuations to add to their holdings.

The renewed buying interest was evident in combined turnover, which zoomed to 114 billion yuan (16 billion U.S. dollars) from 65.4 billion yuan on Wednesday.

Agricultural, forestry, medical, and environmental protection shares led the rise. Environmental protection shares gained again in reaction to a move by the State Council, the Cabinet, which on Tuesday urged government departments to strengthen energy-saving and emission-reducing work.

Fujian-based environmental protection company Longking rose 1.33 yuan or 10.01 percent to close at 14.62 yuan.

Yunnan Copper Co. advanced by the daily limit of 10 percent after copper prices climbed in London futures trading overnight.

Ping An Insurance, the nation's second-largest life insurer, extended losses after plunging 10 percent on Wednesday and lost 5.79 percent, or 2.49 yuan, to close at 40.98 yuan on Thursday. Earlier in the day, Ping An denied market talk of a government investigation into tax evasion. (Xinhua)

     
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