China rail, material stocks soar on investment optimism

Shares in Chinese rail and building material companies bounced higher on Tuesday morning fuelled by optimism that plans to boost railway expansion would ease a glut in sectors such as steel and cement.

The Chinese government planned to use investments in high-speed railways to help reduce overcapacity in those and other construction material sectors, the official Shanghai Securities News reported on Tuesday.

By 0220 GMT, shares of China Railway Construction jumped 5 per cent in Hong Kong and 6.1 per cent in Shanghai.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1289012/china-rail-material-stocks-soar-investment-optimism