CHINA’S benchmark index climbed to its highest level in more than 19 months yesterday after a weeklong holiday, buoyed by gains in property developers as investors cheered the central bank’s move to prop up the housing market.

    The benchmark Shanghai Composite Index ended up 0.80 percent at 2,382.79, marking the highest level since Feb. 20, 2013, when it closed at 2,397.18. It has risen 4.1 percent over a seven-session winning streak. The volume rose to 180.3 billion yuan (US$29.4 billion) from 166.9 billion yuan Sept. 30. The Shenzhen Composite Index rose 1.37 percent to 1,351.82.

    The higher volume indicates a bullish market sentiment, said Jacky Zhang, an analyst at BOC International (China) Ltd.

    Zhang Haidong, an analyst at Tebon Securities, tipped the market to extend gains as the government is expected to continue with its accommodative monetary policy and as an anticipated stabilization in the property market in the fourth quarter lends support to the market.

    The People’s Bank of China said Sept. 30 that purchasers of second homes could now be considered first-time homebuyers, giving them access to lower down payments and mortgage rates. The move was seen as one of its most high-profile efforts yet to arrest the downturn in the nation’s real estate market.

    The property confidence index may see a rebound in the months ahead, said Zhang, adding that the real estate market will continue to be weak in the longer term despite an expected recovery in the months ahead. Property developers rose, with China Vanke up 2.83 percent at 9.44 yuan, Poly Real Estate Group gaining 2.88 percent to 5.71 yuan and Hua Yuan Property hitting its 10 percent daily upside limit at 3.87 yuan.

    Military equipment makers and pharmaceutical firms were among the top gainers. The former was boosted by hopes of supportive measures from the government amid growing uncertainty over the political situation in North Korea, while the latter played catch-up amid growing concerns over the potential outbreak of epidemics such as dengue fever in Guangdong Province and the spread of Ebola overseas. (SD-Agencies)