Chinese shares climb to 13-month high

Chinese equities gained 1.73 percent to hit a 13-month high Thursday led by oil heavyweights.

    The benchmark Shanghai Composite Index on the Shanghai bourse closed at 3,060.25 points, up 52.10 points, or 1.73 percent. The Shenzhen Component Index closed at 11,970.72 points, up 121.97 points, or 1.03 percent.

    Turnover expanded to 266.19 billion yuan (39.15 billion U.S. dollars) from 231 billion yuan Wednesday.

    Oil heavyweights led the gains as the government raised the retail prices of gasoline and diesel by 9-10 percent as of June 30to help oil companies maintain profitability after international crude prices rallied more than 30 percent over the past two months.

    PetroChina, the nation's top oil producer, rose 3.29 percent to15.06 yuan. Sinopec, China's biggest refiner ended at 11.20 yuan, up 3.90 percent.

    Commodity makers rallied as investor confidence was boosted by the signs of economic recovery which could increase demand for raw materials.

    China Shenhua Energy Co., the nation's biggest coal producer advanced 4.33 percent to 31.80 yuan as Guangdong Province, China's economic powerhouse, reported an eight percent increase in power generation in June, the first monthly rise since October.

    Chinalco, the nation's top aluminum maker, gained 4.45 percent to 12.68 yuan. The company confirmed Thursday it had bought 1.5 billion U.S. dollars of Rio Tinto shares to cement its 9 percent shareholding in the miner to maximize its interests.

    The benchmark index is expected to fluctuate around the 3,000 points mark in the short run. The upward trend in the mid-term is unlikely to change if ample bank liquidity, outlined in the stimulus policy, will continue, said Jinzheng Securities in a note to a client.

    The Shanghai Composite Index stood above 3,000 points Wednesday, the first time since June 11 last year, marking a 65-percent rise of the index during the first half.

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