Chinese shares rebounded Monday, along with other regional markets, after Dubai said it had received $10 billion from Abu Dhabi to repay debts owed by its Dubai World investment conglomerate.
Chinese shares rebounded Monday, along with other regional markets, after Dubai said it had received $10 billion from Abu Dhabi to repay debts owed by its Dubai World investment conglomerate.
The benchmark Shanghai Composite Index jumped 55.59 points, or 1.7 percent, to 3,302.90. The Shenzhen Composite Index for China's second exchange ended flat at 1,217.98.
The benchmark surged in the afternoon, along with other major Asian markets, after Dubai's government said it was receiving the bailout from its from neighbor Abu Dhabi.
"The news certainly has sent an optimistic message to investors that the spread of the Dubai crisis is under control," said Li Xianming, an analyst for Pingan Securities, in the southern business hub of Shenzhen.
Blue chips led the rally as institutional investors were building positions, shifting from smaller companies.
Hopes for fuel price hikes kindled buying sentiment for oil giants. China Petroleum & Chemical Corp., Asia's largest refiner by capacity, soared 8.5 percent to 13.72 yuan, while PetroChina Ltd., Asia's biggest oil and gas producer, jumped 3.6 percent to 13.99 yuan.
Better-than-expected corporate earnings sent airliners higher. AirChina Ltd., the country's biggest international carrier, advanced 7.8 percent to 9.42 yuan. China Southern Airlines Ltd. gained 5.3 percent to 6.21 yuan, while China Eastern Airlines Corp. climbed by 3.4 percent to 6.34 yuan.
Bank of China Ltd. rose 3.1 percent to 4.29 yuan. Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, added 1.7 percent to 5.32 yuan, while China Construction Bank Ltd. gained 2 percent to 6.15 yuan.
In currency markets, the yuan weakened to 6.8284 to the U.S. dollar, down from Friday's close of 6.8276.
