STOCKS rose again yesterday to a fresh three-week high, as demand for infrastructure shares helped the market maintain a rebound fuelled by economic stimulus hopes, although some analysts warned the relief rally could soon peter out.

    The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.9 percent, to 3,063.32, while the Shanghai Composite Index gained 1.1 percent, to 2,867.34 points.

    After a sluggish performance in the morning, the indexes were lifted in afternoon trading by the infrastructure sector , which jumped over 2 percent as the government unveiled plans to invest 400 billion yuan (US$61.42 billion) in infrastructure.

    Policymakers are expected to release a package of measures to ensure economic growth is in a reasonable range this year, the Economic Information Daily reported, quoting unidentified people.

    The Shanghai Composite has fallen the most among global benchmark indexes after Greece’s this year on concern the slowdown and the yuan’s depreciation will exacerbate capital outflows. China’s exports declined for a seventh straight month in January and imports plunged 19 percent, data showed Monday.

    “The credit growth is driven by government efforts to boost liquidity and an increase in corporate financing,” said Ken Chen, a Shanghai-based analyst at KGI Securities Co. “Economic indicators did not look pretty in January and many enterprises were facing losses or profit declines. To avoid defaults, the government stepped up easing and essentially delayed the exposure of credit risks. Government departments are also preparing funds for large projects to be launched.”(SD-Agencies)