China stocks extend gain on policy easing hopes

Mainland China share market closed higher seven consecutive session on Tuesday, 17 February 2015, as appetite for risk assets grew by central bank liquidity injection steps and speculation of further monetary easing. The Shanghai Composite Index climbed 0.76% to 3,246.91, taking gains over the seven days to 5.6%.

The People's Bank of China has injected a net 205 billion yuan into the banking system last week. That followed an across-the-board reduction in banks' reserve requirements on 6 February 2015 and the nation's interest-rate cut in November.

China is schedule to hold its National People's Congress in the first two weeks of March 2015, when the government sets its growth target for the year. Beijing is set to unveil China's 13th five-year-plan after the National People's Congress in March. The plan is an important document that outlines national priorities and sets targets for economic and social development.

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