SHANGHAI stocks rose to a 28-week high today over a stabilizing economy and macro-economic stimuli.
The Shanghai Composite Index increased 0.37 percent to 2,285.36 points, the highest level since June 20, 2012. Turnover stood at 96.9 billion yuan (US$15.4 billion).
"The stock market is expected to profit from the stabilizing and recovering economy this year," China Galaxy Securities Co said in a research note today. "China's economy may expand at an accelerating rate of more than 8 percent on the premise of improved growth quality, which is good news for the stock market."
The brokerage firm said the country has developed clearer national strategies since the 18th National Congress of the Communist Party of China. The most eye-catching events for the finance and business sectors include the plans for urbanization and doubling incomes for citizens.
"The macro-economic policies along with economic reforms have made it easier for the stock market to rebound. The index may hit 2,800 points this year," Galaxy Securities said.
Health care companies rallied after the State Council said the biological sector is a strategic emerging industry. Biomedicine companies were among the top gainers today with an average increase of 2.6 percent.
Guangzhou Pharmaceutical Co, soared the daily limit of 10 percent to 21.78 yuan. Shanghai Pharmaceuticals Holding Co jumped 4.2 percent to 11.47 yuan. China National Medicines Co advanced 2.4 percent to 14.38 yuan.
China's stock markets tumbled an average of 65 percent after the financial crisis emerged, while US markets shed roughly 8 percent, Zhou Zhengqing, former chairman of the China Securities Regulatory Commission, said in a conference in Beijing over the weekend.
"The gap is mainly due to the poor quality of listed companies in China. To protect investors' returns, the regulator should improve the quality of the listed companies by establishing a scientific listing and delisting system," Zhou said.