Shanghai shares close with 0.3% weekly gain on energy

Ding Yining
Shanghai shares posted weekly gain despite weakening performance today.
Ding Yining

Shanghai stocks closed with a retreat on Friday but recorded the seventh weekly gain thanks to strong performance of shares such as steel makers and non-ferrous metal makers.

The Shanghai Composite Index lost 0.3 percent to 3,262.08 points but posted a weekly gain of 0.3 percent.

Steel makers continue to benefit from the government’s efforts to cut excessive and outdated capacity.

Angang Iron & Steel surged the daily limit of 10 percent while Bengang Steel Plates advanced 9.28 percent to 6.95 yuan. Baoshan Iron & Steel, the country's largest steelmaker, jumped 4.1 percent to the highest level in more than two years. 

Military segment were also upbeat. Both China Aerospace Times Electronics Co and Avicopter Plc hiked the daily limit of 10 percent. 

Real estate shares dragged down the index. China Vanke Co lost 1.17 percent and Shanghai Jielong Industry Group Co sank 3.38 percent to 6.58 yuan. 

“The ongoing supply-side reform has clearly paid off but investor shall be cautious about excessive gains of in the early stage, and the domestic liquidity situation still faces uncertainty with financing cost likely to raise following the crack down on financial market,” Shenwan Hongyuan Securities  wrote in a research note today.

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