Chinese stocks rise on last trading day of 2011

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Chinese stocks gained ground Friday, the final trading day in 2011, led by property developers and automakers.

The benchmark Shanghai Composite Index ended the year at 2,199.42 -- up 1.19 percent on the day, but down 21.68 percent for 2011.

The Shenzhen Component Index, which increased 1.57 percent to close at 8,918.82 on Friday, was down 28.41 percent cumulatively from the beginning of this year.

The country's stock market slide in 2011 was a result of trimmed bank lending, tightened restrictions on the real-estate sector, and weak external demand as the United States and the European Union remain mired in wobbly recovery, analysts said.

Combined turnover rose to 83.8 billion yuan (13.3 billion U.S. dollars) Friday from 71.68 billion yuan the previous trading day.

Gainers outnumbered losers by 865 to 45 in Shanghai, and by 1,310 to 66 in Shenzhen.

Property developers led the rises, with Poly Real Estate Group Co., the country's second-largest developer, rising 2.67 percent to finish at 10 yuan per share. Its smaller rival China Merchants Property Development Co. gained 1.69 percent to 18 yuan.

Automakers also surged a 2.2-percent surge across the board, after the National Development and Reform Commission said Thursday that China will stop encouraging foreign investment in car manufacturing in order to promote the healthy development of the country's auto market.

FAW Car Co. gained 4.73 percent to close at 8.85 yuan per share, while Beiqi Foton Motor Co. rose 3.38 percent to 5.81 yuan.