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This is an archive article published on December 1, 2010

China shares end up 0.1 per cent

The Shanghai Composite Index closed up 0.1 per cent at 2,823.4 after slumping on Tuesday.

China’s key stock index ended marginally higher in miniscule volume on Wednesday,with a cash squeeze and concerns about strong inflation data due next week prompting risk adverse investors to avoid taking large positions.

The Shanghai Composite Index closed up 0.1 per cent at 2,823.4 after slumping on Tuesday,with a liquidity crunch in the domestic money market weighing on the stock market.

The index dropped more than 5 per cent in November,compared with a 12 per cent gain in October.

Analysts said the index had solid support at its 125-day moving average at 2,698 points. Firm resistance was seen at the 250-day moving average at 2,877 points,a mark the index plunged from on Tuesday.

Speculative retail investors,who make up two-thirds of turnover,continued to focus on policy measures,avoiding active buying of heavily weighted commodity,banking and transportation issues,sectors considered vulnerable in a policy tightening environment.

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