China stocks close up at 2.5 month high

China s key stock index ended up 1.3 per cent on Monday, the highest level in two-and-a-half months, as funds, private equity and insurance companies increased their holdings in anticipation of a further rally, analysts said. With so many investors rushing into buying stocks, the market was flushed with money, which offset weaker manufacturing output in China in July, they said. The index was also boosted by wine companies, as markets expected these wine brewers to publish optimistic earnings results in the second quarter. The Shanghai Composite Index ended at 2,672.5 points, up from Friday s 0.6-per cent fall. The market expects ...

More...