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Shanghai: Stocks rise, led by property shares, after Fed leaves rates unchanged

Thursday, September 22, 2016 - 16:44
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[SHANGHAI] China stocks posted solid gains on Thursday as the Federal Reserve's decision to keep US interest rates unchanged eased investor anxiety.

The rally came after robust overnight gains on Wall Street, and followed a week of extremely low volatility in mainland stocks.

"Volatility had been very low recently because investors dared not make big bets ahead of the Fed rate decision, for fear of nasty surprises," said Wu Kan, head of equity trading at investment firm Shanshan Finance.

"Now, the uncertainty has been removed."

The blue-chip CSI300 index rose 0.7 per cent, to 3,291.12, while the Shanghai Composite Index gained 0.5 per cent to 3,042.31 points.

All main sectors rose, with listed developers leading the charge. An index tracking the sector jumped nearly 5 per cent, aided by renewed strength in bellwether Vanke.

Interest in the sector was kindled by news that Hong Kong-listed developer Sunac China Holdings plans to buy 17 per cent of Jinke Property, pushing Jinke's shares up 10 per cent.

REUTERS