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Confident China climbs two-month peak

Chinese stocks touched a two-month high yesterday as the optimism over the country's policy outlook showed few signs of abating.

The Shanghai Composite index climbed 0.6 per cent to 2,648.12 after the central bank said it would maintain a moderately loose” monetary policy through the second half of the year.

The benchmark index has rallied about 12 per cent from a 2010 low hit in early July – although it is still down 19 per cent from the start of the year.

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