China A-shares close higher led by nonferrous metals - UPDATE.

(From AFX Europe (Focus))

SHANGHAI (XFN-ASIA) - China A-shares closed higher after a late surge in nonferrous metal stocks after Yunnan province announced a plan to buy 1 mln tons of base metals to support smelters in the region.

Property developers also gained favor with China Merchants Property Development (SZA 000024; SZB 200024) rising 5.5 pct on the completion of the issue of 450 mln new shares to both institutional and individual investors. It raised 5.94 bln yuan.

Home appliance makers were in demand. The commerce and finance ministries announced yesterday that a pilot program to subsidize rural appliance purchases will be extended nationwide starting in February.

The benchmark Shanghai Composite Index closed up 23.46 points or 1.25 pct at 1,894.62, after falling 2.44 pct on Friday. Turnover rose to 52.24 bln yuan from 50.51 bln in the previous session.

"Confidence appears to be returning with the market halting Friday's slide. Companies seen benefiting from the fresh stimulus measures were most active today, " noted Cao Xuefeng, an analyst with West China Securities.

Yunnan Tin (SZA 000960) rose by the 10 pct daily limit to 11.54 yuan, Jiangxi Copper (SHA 600362; HK 0358) rose 0.84 yuan or 7.88 pct to 11.50 and Aluminum Corp of China (Chalco) (SHA 601600; HK 2600) added 0.18 yuan or 2.48 pct to 7.45.