Shanghai stocks see biggest rise in 4 months due to $318 bln investment plan
SHANGHAI May 25 (Reuters) - Shanghai's benchmark stock index posted its biggest gain in four months on Monday, led by infrastructure and transport shares, after Beijing invited private investors to help build $318 billion of projects ranging from highways to tunnels.
The Shanghai Composite Index gained 3.4 percent, to 4,813.80 points, its biggest one-day rise since Jan. 21. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 3.0 percent, to 5,099.49.
China's state planning agency on Monday released a list of more than 1,000 proposed projects totalling 1.97 trillion yuan ($317.75 billion) that it is inviting private investors to help fund, build and operate.
These so-called public-private partnership (PPP) projects represent the latest effort by the government to reinvigorate China's flagging economy and are a boon to infrastructure stocks, said Zhang Chen, analyst at Shanghai-based hedge fund manager Hongyi Investment.
But Shenzhen's growth board ChiNext ended lower on Monday, after China's securities regulator said it would strengthen a crackdown on share-price manipulation.
Several ChiNext companies whose shares have hit astronomical levels, including Guangdong QTone Education Co and Beijing Baofeng Technology Co Ltd, slumped. (Reporting by Samuel Shen and Pete Sweeney; Editing by Richard Borsuk)
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