China shares end at 7-week high as banks gain

SHANGHAI (Reuters) - China shares closed at their highest in seven weeks on Tuesday, driven by investor enthusiasm for banking shares after more details on a recently unveiled preferred share scheme were released over the weekend.

The Shanghai Composite Index ended up 1.9 per cent at 2,098.28 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings rose 2.4 per cent.

The CSI300 sub-index of banking shares closed up 3.81 per cent, its highest level since Dec 19.

Industrial Bank Co rose 8.0 per cent, China Minsheng Banking Corp gained 4.8 per cent and Ping An bank Co added 4.5 per cent.

The gains were more an indication of investor enthusiasm over the new policy than a reflection of concrete details, as there was little new in the announcement, analysts said.

Auto manufacturer Lifan Industry (Group) Co jumped 10 per cent after the company announced on Friday that it had signed a framework agreement to invest about 2.2 billion yuan (S$446 million) in a new energy car project.

China's financial markets were closed for a public holiday on Monday.