China Shares At 2-month High On Strong Liquidity

SHANGHAI (AP) — Chinese shares climbed to a two-month high Tuesday on fund inflows spurred by expectations for a stronger yuan and on continued strength in oil and other commodities.

The benchmark Shanghai Composite Index rose 46.18 points, or 1.5 percent, to 3,084.45. The Shenzhen Composite Index for China's second exchange also jumped 1.5 percent, to 1,073.48.

Chinese shares tracked overnight gains on Wall Street as the weakening dollar raised expectations that so-called "hot money" will flow into Chinese investments, analysts said.

"The depreciation of dollar will cause a reallocation of global capital, quite some of which will flow into the Chinese market," said Mao Nan, an analyst for Oriental Securities in Shanghai.

Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, added 2.2 percent to 5.11 yuan after Allianz SE and American Express Co. said they will maintain their holdings in the bank's Hong Kong shares after a lockup expires Tuesday. Bank of China Ltd. added 1.7 percent to 4.11 yuan, while China Construction Bank Ltd. gained 1.5 percent to 5.99 yuan.