China's key stock index rose 2.11 percent Monday, the fifth consecutive positive session since the exchange plunged 8.26 percent last Monday.

The benchmark Shanghai Composite Index, which covers both A- and B-shares listed on the Shanghai Stock Exchange, climbed 82.54 points to close at 3,995.68 on turnover of 181.2 billion yuan (23.6 billion U.S. dollars). The index traded between 3,930.74 points and 4,000.42 points.

Despite the recovery, the key index is still 8.5 percent down on its record of 4,334.92 points set on May 29. The index plunged sharply after China tripled stamp tax on share trading to cool the overheated stock markets on May 30.

The Shenzhen Component Index on the nation's smaller bourse was up 2.62 percent, or 337.02 points to finish at 13,187.71 on turnover of 99.8 billion yuan.

The Hushen 300 Index reflecting the fluctuation of China's two stock exchanges closed at 3931.86 points, up 2.45 percent, or 94.00 points from the previous close.

A total of 1,046 out of the 1,400 stocks listed on the two exchanges rose, and nearly 100 stocks jumped by the daily limit of 10 percent.

Turnover was modest with investors still wary of possible further interest rate rises, particularly since China's inflation in May was almost certain to exceed the government target of three percent for the whole year, dealers said.

Credit Suisse recently raised its forecast for an increase in China's consumer price index in May to 3.5 percent following recent rapid hikes in pork prices.

"The People's Bank of China (PBoC) may raise interest rates in the middle of June if the CPI rise in May exceeds 3.5 percent," the Economic Observer Newspaper quoted Tao Dong, chief regional economist for non-Japan Asia at Credit Suisse, as saying.

Blue chips led the index rise. The Industrial and Commercial Bank of China gained 0.80 percent to 5.06 yuan, and Bank of China added 0.97 percent to 5.21 yuan.

The China Petroleum and Chemical Corporation, better known as Sinopec, rose 2.47 percent to 14.94 yuan, and China Life, the nation's largest life insurer, jumped 3.02 percent to 36.82 yuan.

Source: Xinhua