Stainless Steel Me

Chinese shares rebounded Thursday on government plans to raise tax rebates on a range of exports to boost sluggish trade.

The benchmark Shanghai Composite Index climbed 70.15 points, or 3.1 percent, to close at 2,361.7. The Shenzhen Composite Index for China’s smaller second exchange added 2.2 percent to close at 774.05.

The Cabinet announced Wednesday it will raise rebates of value-added taxes April 1 on exports of textiles, steel, nonferrous metals, petrochemicals and other goods. The government also said it will try to help Shanghai develop as a financial and transportation center.

Shares fell Thursday, breaking a seven-day rally. But analysts said the rally might resume as the government gives more details of industry stimulus plans and on better-than-expected U.S. data on home sales and manufactured goods orders.

“With more details of the government’s 10 industrial stimulus plans to be formalized, the market is confident,” said Chen Huiqin, analyst for Huatai Securities in the eastern city of Nanjing. “Plus, the U.S economic figures announced yesterday were not bad – actually, encouraging news to the world.”

Banks rebounded after Industrial & Commercial Bank of China Ltd., the country’s biggest commercial lender, reported profits up 35.2 percent last year. ICBC surged 5.8 percent to 3.99 yuan. Bank of China Ltd. jumped 3.5 percent to 3.51 yuan.

Shanghai-related shares soared on the government plan to support the city’s development. Shanghai International Port Group and China Eastern Airlines Ltd., a Shanghai-based airline, both shot up by the daily limit of 10 percent – the port to 4.94 yuan and China Eastern to 6.04 yuan.

Nonferrous metals resumed their interrupted rally, with Jiangxi Copper Ltd. vaulting 9.7 percent to 24.46 yuan and Aluminum Corp. of China increasing 7.2 percent to 11.16 yuan