Chinese shares closed higher Wednesday on the last trading day of 2014, with Shanghai finishing at a near five-year high on hopes of monetary easing after weak manufacturing data, dealers said.
The benchmark Shanghai Composite Index jumped 2.18 percent, or 68.86 points, to 3,234.68 on turnover of 432.3 billion yuan ($70.6 billion).
The close was the highest since January 19, 2010, when the index ended at 3,246.87 points.
The Shanghai index surged 52.87 percent for the year.
The Shenzhen Composite Index, which tracks stocks on China`s second exchange, gained 1.19 percent, or 16.62 points, to 1,415.19 on turnover of 208.1 billion yuan. It soared 33.80 percent for the year.
British bank HSBC said Wednesday its purchasing managers` index for China was 49.6 in December, down from a reading of 50.0 in November.
"Weaker economic activity and stronger disinflationary pressures warrant further monetary easing in the coming months," HSBC economist Qu Hongbin said in a statement.
The Shanghai Securities News reported Wednesday that China could launch longer-term lending facilities, a move seen as paving the way for monetary easing.
"The news on the lending facilities led heavyweight blue chips higher today," Northeast Securities analyst Shen Zhengyang told AFP.
"China`s monetary stance has maintained the same easing tendency in order to boost the economy and it`s only a matter of difference over which tools it will use," he said.
Banks rose, with Shanghai-listed ICBC adding 3.40 percent to 4.78 yuan and Shenzhen-listed Ping An Bank gaining 2.19 percent to 15.84 yuan.
China`s top two train makers jumped in Shanghai trading after confirming a merger. China CNR Corp. and CSR Corp. both rose their 10 percent daily limits, with CNR reaching 7.10 yuan and CSR hitting 6.38 yuan.
