Liquidity expectations help fuel stock surge

SHANGHAI: China's major stock index jumped 2.7 percent yesterday as investor confidence was boosted by sound corporate interim earnings and expected further capital injections into the market.

Analysts said investors were excited by the prospect of renewed liquidity, with about 80 billion yuan from mutual funds expected to soon flow into the market.

The Shanghai Composite Index surged 113.64 points to close at 4,323.97, with 827 out of 902 stocks closing higher. The turnover on the Shanghai bourse totaled 125.68 billion yuan, down 11.25 percent from 141.62 billion yuan on Tuesday.