UPDATE 1-China shares scale 3-year highs, banks gain on expectations of deposit insurance plan
(Adds analyst comments)
SHANGHAI Nov 28 (Reuters) - China stock indexes rose for the seventh straight session on Friday and posted their biggest monthly gains in nearly two years, led by banking shares on speculation that a deposit insurance scheme would be unveiled soon.
A surprise interest rate cut last week to boost the flagging economy and hopes of further policy easing have also re-ignited demand for Chinese shares.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.0 percent to 2,808.82 points, the highest level since September 2011.
The Shanghai Composite Index also gained 2.0 percent to 2,682.83, its highest since August 2011.
For the month, the CS1300 was up 12 percent while the SSEC gained nearly 11 percent, the biggest monthly gain since December 2012.
Bank shares led the gains after reports on Thursday that the central bank had could soon announce the draft rules for the introduction of an insurance system to protect depositors in case a bank fails.
Chen Xingyu, a banks analyst at Phillip Securities (Hong Kong) Limited, said a deposit insurance scheme would entice more people to park their savings at banks.
Shares of Agricultural Bank of China rose 6.3 percent, China Everbright Bank jumped by its 10 percent daily limit and China Minsheng Banking Corp rose 8.6 percent. Continuación...