BEIJING: Chinese stocks rose to the highest level in seven years as a rally by technology companies overshadowed declines by financial shares.
Shanghai Wangsu Science & Technology Co. surged 8.6 percent, while Zhejiang Dahua Technology Co. extended its rally this year to 82 percent. Ping An Insurance Group Co. slid 1.4 percent after agreeing to buy a 9.9 percent stake in Country Garden Holdings Co. Poly Real Estate Group Co. paced losses by property developers.
The Shanghai Composite Index added 0.4 percent to 3,825.78 at the close, its highest level since March 2008. A measure of technology companies climbed 2 percent, taking its gain for 2015 to 65 percent. Premier Li Keqiang has pledged to encourage investment in the industry to help wean the world’s second-largest economy from a reliance on heavy manufacturing and property development.
“There’s unabating interest in the technology and internet sector as there’s strong support from the government,” said Zhang Dongyi, Guangzhou-based fund manager at Guangfa Fund Management Co. “The market will see increased volatility after recent feisty gains.”
