SHANGHAI, Nov 25 (Reuters) - China's key stock index closed up 1.3 percent in active trade on Thursday, its highest in over a week, as investors piled into transport firms such as automaker Lifan Industry, which surged on its trading debut.
Large-cap financials and property plays, which had been hit over the past week on official monetary tightening steps, rebounded after the central bank signalled a tentative pause of such measures, easing investor worries.
The Shanghai Composite Index ended at 2,898.3, rising above its 250-day moving average, now at 2,884, points, for the first time in three sessions.
Analysts said the gains were mostly technical, with some buying back into sectors such as banks and property after large falls over the past week. They cautioned that further significant gains were unlikely as retail investors, accounting for more than two-thirds of turnover, would be on guard for new signs of monetary tightening measures.
Lifan, which makes motorcycles and cars, jumped 23.2 percent by the close. (Reporting by Farah Master; Editing by Jason Subler)