Shares bolstered by energy and manufacturing
Shanghai market ended higher on the first trading day of September, bolstered by steel makers after industrial activities picked up in August.
The benchmark Shanghai Composite Index edged up 0.19 percent to 3,367.12 points with turnover rose to 313.7 billion yuan (US$46.8 billion).
AVIC Securities wrote in a research note that with the date of the Party Congress finally set at mid October, the market sentiment is generally stable and investors are also looking forward to more economic stimulus measures.
The CPC Central Committee would likely lay out the vision for the next five years with focus on areas like economic reform and the crackdown on corruption.
China’s top coal miner China Shenhua Energy Co Ltd surged the daily limit of 10 percent after parent Shenhua Group Corp Ltd gained regulatory approval to take over China Guodian Group Corp.
UBS Securities wrote in a research note today that major industrial companies’ profitability could increase further as a result of government’s continued efforts to phase out pollution and manufacturers with low capability.
Both Shanxi Antai Group Co and Shanxi Coking Co also surged the maximum allowed 10 percent.
Steel makers also pushed up the index. Anyang Iron & Steel Inc jumped 10 percent and Xining Special Steel Co advanced 4.58 percent to 7.77 yuan.