China stocks jump 4 per cent ahead of policy meeting

China's two main stock markets rose more than 4 per cent on Friday, buoyed by a positive manufacturing survey and ahead of an annual economic policy meeting. The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, closed at 2,150.63 points, up 4.32 per cent. The smaller Shenzhen Component Index climbed 4.4 per cent to end trading at 8,530.9 points. Investors were encouraged by signs of economic stabilization after a recent slowdown in growth, the official Xinhua news agency quoted analysts as saying. They held 'high expectations' of this month's policy meeting, which brings together top state and Communist Party leaders, the agency said, adding that the party had however not confirmed the date of the meeting. The markets were also boosted by a monthly HSBC Flash Purchasing Managers' Index (PMI) of 50.9, a 14-month high that suggested orders were increasing faster than expected in December.