China's stocks close up Friday on ECB rate cut

Chinese stocks on Friday continued to rise after the European Central Bank unexpectedly cut its benchmark interest rate overnight, with the benchmark Shanghai Composite Index up 0.81 percent, or 20.2 points, to close at 2,528.29. The Shenzhen Component Index rose 0.71 percent, or 75.37 points, to finish at 10,699.49. Combined turnover stood at 193.9 billion yuan (30.52 billion U.S. dollars), down from 272.1 billion yuan the previous trading day. Gainers outnumbered losers 683 to 218 in Shanghai, and 931 to 391 in Shenzhen. The European Central Bank (ECB) unexpectedly announced to cut its benchmark interest rate from 1.50 percent to 1.25 percent on Thursday, in a bid to calm markets over fears that Greece could drop out of the euro zone. Boosted by the European Central Bank's surprising rate cut and strong heavy weights, the benchmark Shanghai index opened higher Friday and reached a two-month intra-day high of 2536.78 in the morning. Investors were also encouraged by Greece's decision to abandon a referendum on Europe's bailout plan, analysts said. Oil producers rose Friday as China's Ministry of Land and Resources said Thursday that only 26 percent of the country's oil deposits have been prospected, and 85 percent of natural gas reserves remained unexplored. PetroChina, China's largest oil and gas producer, edged up 1.51 percent to 10.11 yuan. Shanghai SK Petroleum and Chemical Equipment Corporation Ltd. climbed 6.42 percent to 12.44 yuan. Property shares also rose briskly, with Lander Real Estate Co.,Ltd. and Beijing Centergate Technologies (Holding) Co., Ltd. both jumped by the daily limit of 10 percent to 4.79 yuan and 7.33 yuan, respectively. Media and entertainment companies retreated after rising for several trading days. Zhejiang Huace Film and TV Co., Ltd. dropped 3.96 percent to 33.75 yuan, while Huayi Brothers Media Corporation dipped 2.57 percent to 17.81 yuan.