Shanghai stocks gain 2.4 per cent on fuel price hike

Feb 8, 2012, 8:11 GMT

Beijing - China's main stock market index soared by more than 2 per cent on Wednesday buoyed by rises in oil-related shares following an overnight hike in fuel prices.

The key Shanghai Composite Index, which tracks shares traded in domestic and foreign currencies, rose 2.43 per cent to close at 2,347.53 points.

The smaller Shenzhen Component Index gained 3.14 per cent.

State media said the surge was led by oil-related shares after the government announced rises of 300 yuan (48 dollars) per ton for retail prices of petrol and diesel from Wednesday.

The government said the rise in fuel prices was in accordance with its regulations for responding to higher international oil prices.

The official Xinhua news agency said the government had 'moved quickly' to announce the price rise after consumer inflation in December slowed to 4.1 per cent.

'The price rise will help motivate the oil refineries, ensure supply in the domestic market, guide rational consumption and promote emission cuts,' the agency quoted an unnamed official from the National Development and Reform Commission, the state planning agency, as saying.