Investors monitor stock price movements at a brokerage firm in Weifang, East China's Shandong Province June 6, 2007. [newsphoto]
Chinese stocks posted solid gains on Thursday in the third straight upward session, reversing sharp falls after a stamp tax hike announced last week.
The benchmark Shanghai Composite Index rose 3.03 percent to close at 3,890.80 points, following a 0.24 percent increase on Wednesday.
Analysts attributed the rise partly to gradually stabilized market sentiment, which was helped by a series of subtle but appeasing moves by regulators.
China has no plans yet to levy a capital gains tax, reported Shanghai Securities News on Thursday, citing an unidentified official source. Even if regulators have such a plan, they have to go through legislative procedures that may take years, according to the source. ( )
The article came after central bank vice governor Wu Xiaoling Wednesday urged investors to have faith in the country's stock market, saying the government's policies were geared towards supporting a sound, rising trend.
About 1,200 out of more than 1,400 stocks in the Shanghai and Shenzhen stock exchanges rose, with over 120 jumping to their daily limit of 10 percent.
Sinopec, Asia's biggest oil refiner, gained 4.0 percent to close at 14.82 yuan per share, while China Life rose 4.84 percent to 35.95 yuan. Bank of China went up 0.58 percent to 5.20 yuan, and the Industrial and Commercial Bank of China increased 0.60 percent to 5.07 yuan.
The trading volume in the Shanghai Stock Exchange picked up a little bit from Wednesday, hitting 177.77 billion yuan, while turnover in Shenzhen shrank to 91.94 billion yuan from 98.07 billion yuan in the previous session.
Thursday marked the third session in a row that saw increases in the Shanghai Composite Index, erasing part of the losses incurred after the tripling of the stamp tax, which included a 6.5 percent drop on May 30 and an 8.3 percent tumble on June 4.