China shares end up 1.1 pct

China8217;s main stock index closed up 1.1 per cent on Wednesday at nearly a one-month high,breaching the key 3,000-point level boosted by banking shares,with investors largely shrugging off Beijing8217;s fourth interest rate increase since October.

Some analysts said the rate rise announced late on Tuesday would be a net positive for banks as it could help to slightly widen the spread between lending and deposit rates that banks rely on for much of their revenue.

The benchmark Shanghai Composite Index ended at 3,001.4 points,its highest level since March 9,extending a 1.3 per cent rise on Friday. The markets were closed on Monday and Tuesday for the Tomb Sweeping Festival.

Some traders pointed to abundant liquidity in the financial market as the root cause for the index8217;s recently strong performance,meaning more tightening may be on the cards.