Chinese shares rebounded Friday as jitters over the possibility of more credit-tightening eased, led by property developers, according to AP. The benchmark Shanghai Composite Index rose 27.58 points, or 1.1 percent, to close at 2,583.52, but ended the week down by 4 percent. The Shenzhen Composite Index for China's smaller second exchange jumped 2.5 percent to 1,008.48. The government might wind down credit-tightening policies to offset a possible drop in exports uncertainty remained about Europe's debt problems, analysts said. The Europe Union is China's biggest trading partner. «At least it's unlikely for the government to impose more credit reining-in policies in the short run, otherwise it will depress China's economic recovery,» said Zhou Lin, an analyst for Huatai Securities in the eastern city of Nanjing. Real estate developers recovered on hopes of no more price curbs. Poly Real Estate Group soared 6 percent to 11.16 yuan, while rival China Vanke Ltd., the country's biggest developer, gained 4.1 percent to 7.39 yuan. Xinjiang-based companies were heartened after the government on Thursday pledged to double investment to support the region in next five years. Steel producer Xinjiang Bayi Iron & Steel Co. advanced 8.2 percent to 22.52 yuan, while Xinjiang Goldwind Science & Tech Co., a major wind turbine maker, surged 6.4 percent to 22.66 yuan. Airlines also trimmed some previous losses after being hurt by flight cancellations due to the Iceland volcano. China Eastern Airlines Corp. climbed 3.6 percent to 7.16 yuan, while Air China Ltd., the country's biggest international airlines, added 1.3 percent to 10.49 yuan. In currency markets, the yuan strengthened to 6.8275 to the U.S. dollar, up from Thursday's close of 6.8276.
