CHINA’S shares ended higher Thursday as expectations grew that the government may take more measures to boost confidence while improved liquidity in the banking system also lent support.

    The benchmark Shanghai Composite Index ended up 2.60 percent, or 52.15 points, at 2,056.32, posting the highest percentage-point gain since Sept. 7, when it rose 3.70 percent. The Shenzhen Composite Index rose 2.59 percent, or 21.17 points, to 837.96.

    Volume on the Shanghai and Shenzhen stock exchanges rose to 115.34 billion yuan (US$18.2 billion) from 78.13 billion yuan Wednesday.

    However, analysts said they aren’t that optimistic in the absence of signals of an improvement in economic fundamentals, pegging immediate resistance for the Shanghai index at the 30-day moving average of 2,075.06.

    “I’m afraid the rise could be short-lived if the government doesn’t launch fresh, market supportive measures,” said Huatai Securities analyst Zhou Lin. Capital Securities analyst Jacky Zhang said that “the market may lack strong upward momentum ahead of next week’s National Day holidays.”

    The Shanghai market rose by as much as 3.18 percent shortly after the afternoon session opened because of widespread talk that the country’s securities regulator was planning to unveil fresh measures, including streamlining the IPO-approval process.

    But a source close to the China Securities Regulatory Commission shot down market chatter Thursday that a briefing due at later the day would address reforms to the initial public offering system, saying the talk will instead focus on information security.

    The market had been in recovery since the open after China Securities Journal reported that 32 companies listed on the ChiNext board said their majority stakeholders had committed to holding around 38.44 billion yuan worth of shares beyond the expiry of a three-year-lock-up period.

    The central bank’s shot of liquidity into the banking system this week contributed to gains. The People’s Bank of China made its biggest-ever weekly fund injection of a net 365 billion yuan. It comes ahead of the end-of-quarter liquidity crunch and the week-long National Day holiday starting Oct. 1.

    Blue chips including financials and property developers led gains Thursday given their attractive valuations, analysts said. (SD-Agencies)

   Shareholders pledge not to dump shares 

    THE main shareholders of 32 firms listed on the Shenzhen Stock Exchange’s ChiNext, a NASDAQ-style board focused on small-cap firms, will extend their share lock-up period, in an apparent gesture to support domestic stock markets which have sagged on concerns of slower economic growth.

    The extension of the share lock-up period to the end of this year encompasses 2.78 billion shares worth a combined 38.44 billion yuan (US$6.1 billion) and was in accordance with guidance from regulators to help stabilize the market, domestic media said.

    The pledge by shareholders, announced by the companies Thursday, extends a three-year-lock-up period that was set to end in late October — a time which coincides with the third anniversary of the launch of ChiNext.

    Listed firms on ChiNext gaining pledges from major shareholders included Nanfeng Ventilator Co. and Shanghai Bestway Marine Engineering Design Co. (SD-Agencies)