Shanghai shares in biggest daily gain in nine months, banks surge
Sept 9 (Reuters) - Shanghai shares started the week with their biggest daily gain in nine months, thanks to a batch of solid August economic data and hopes that regulators will allow banks to issue preferred shares.
The Shanghai Composite Index ended up 3.4 percent at 2,212.5 points, its biggest daily gain since surging 4.3 percent on Dec. 14, 2012. The CSI300 of the leading Shanghai and Shenzhen A-share listings jumped 3.5 percent.
Traders cited a report on the Money Week magazine website that Shanghai Pudong Development Bank, China Minsheng Bank, Ping An Bank and Everbright Bank may issue preferred shares to meet core capital requirements.
Analyst say preferred shares are typically not publicly traded and have less of a diluting impact on existing stakes.
Shanghai-related counters, which have risen recently, again had solid gains after the official Shanghai Securities News reported on Monday that companies operating in the city's new free-trade zone may enjoy special tax exemptions.
Official data early on Monday showed China's annual consumer inflation was 2.6 percent in August, in line with market expectations. Producer prices fell 1.6 percent last month from a year earlier, slightly less than an expected fall of 1.8 percent.
(Reporting by Clement Tan in SINGAPORE; Editing by Richard Borsuk)