Shanghai Composite jumps 2.93% on stimulus bets

Mainland China share market closed higher in volatile trading on Wednesday, 10 December 2014, on renewed speculation of further policy easing from government after lesser than expected growth in inflation in November. The benchmark Shanghai Composite Index ended higher by 2.93% at 2940.01, after falling as much as 1.7% earlier in the day. The benchmark plunged 5.4 % yesterday following a surprise move by Beijing to rein in lending that fueled concerns about growth in the world's No. 2 economy.

Inflation in China rose less than expected, providing policy makers room for further stimulus to support growth. China's consumer-price index rose 1.4% from a year earlier in November, a five-year low, after a 1.6% on-year rise in October, data from the National Bureau of Statistics showed on Wednesday. The CPI declined 0.2% month-over-month in November. In October, it was flat compared with the preceding month. China's producer-price index fell 2.7% year-over-year in November, faster than a 2.2% fall in October. The PPI declined 0.5% month-over-month in November. In October, it fell 0.4% from September.

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