Chinese stocks ended slightly higher on Thursday after official data showed a rebound in consumer price growth in January.

The benchmark Shanghai Composite Index moved up 0.09 percent, or 2.06 points, to close at 2,349.59.

The Shenzhen Component Index gained 0.03 percent, or 3.15 points, to finish at 9,560.73.

Gainers outnumbered losers by 598 to 283 in Shanghai and by 992 to 345 in Shenzhen.

Total turnover rose to 169.3 billion yuan (26.87 billion U.S. dollars) from 147.5 billion yuan on the previous trading day.

China's consumer price index, a main gauge of inflation, rose 4.5 percent year-on-year in January, up from 4.1 percent in December and 4.2 percent in November, the National Bureau of Statistics said Thursday.

The higher-than-expected rebound may encourage the government to refrain from loosening the country's economic policies, said Peng Wensheng, chief economist for the China International Capital Corporation, the country's largest investment bank.

Indices on both stock exchanges gave up gains in afternoon trading after climbing to new highs, indicating that investors remain cautious about policy moves, analysts said.

But an Everbright Securities report said the rebound will continue in February, as market shares are undervalued and industrial capital will increase stock holdings.

The property sector rose the most, with shares up 1.74 percent across the board. China Vanke, the country's largest real estate developer, gained 1.45 percent to close at 7.7 yuan per share. The Shenzhen-based Gemdale Corporation surged 2.85 percent to 5.41 yuan.

Shares of medical equipment manufacturers also rallied, with Topchoice Medical Investment up 3.42 percent to finish at 19.68 yuan and Shenzhen Glory Medical up 3.2 percent to 20.31 yuan.

The ferrous metal and banking sectors lost ground, with Jilin Liyuan Aluminum sliding 2.61 percent to close at 19.78 yuan. The Bank of Communications, China's fifth largest bank by asset value, lost 0.98 percent to finish at 5.03 yuan.

Source:xinhuanet