Shanghai stocks were the region's best performers last week, powered by a new policy allowing people from outside Pudong to buy homes in the area. Both A-and B-share indices in Shanghai put on hefty gains after the release of the policy, with the 39-share B index nudging out its relative for the top place. The new policy took effect on August 1 and saw hundreds registered to buy homes, which investors took to be bullish for Pudong property prices. B-share Pudong developer Shanghai Lujiazui Finance and Trade Zone Development, paced the gain as it surged to a year high on the news. Brokers said the strong support for Lujiazui was due to domestic institutional support. It greatly boosted investor confidence and stimulated active buying of other Pudong shares. Elsewhere in the region, Taiwan shares also made impressive gains. Shares in Taipei surged on Tuesday after a newspaper reported that the government planned a large number of construction projects over the next twelve months. The index of construction shares made the best gains.
