China Stocks Erase Loss as Builders Get Official Boost
- Transport ministry announces plans to expand highway system
- Baoshan Iron & Steel slips along with refined metals futures
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China stocks rose in afternoon trading to erase earlier losses as investors bet on state-backed builders after the government announced a spending plan for public works that include 5,000 kilometers of new highway next year.
The Shanghai Composite Index rose 0.4 percent to 3,122.57 at the close, reversing a loss of as much as 1.3 percent. China Communications Construction Co. surged 7.9 percent for its biggest gain since Nov. 3. Other large state-owned builders of housing, ships and nuclear plants also jumped. The Shenzhen Composite Index erased an earlier loss to add 0.4 percent.