Shanghai shares edge up

Hu Yumo
China's positive economic data and news the financial and new-energy vehicle sectors would be opened wider lift key share index
Hu Yumo

Shanghai shares edged up today, helped by positive economic data and news that China’s financial and new-energy vehicle sectors would be opened wider.

The Shanghai Composite Index added just 0.28 percent to close at 3,362.86 points.

Investor sentiment was lifted as China’s loan data in August exceeded market expectations. Chinese banks extended 1.09 trillion yuan (US$166.5 billion) in net new yuan loans in August, up 143.4 billion yuan from the same period last year, according to the data released by the People’s Bank of China.

“Loan data in August have exceeded market expectations, which means banks are increasing financial support for the real economy,” said Wen Bin, chief analyst at China Minsheng Banking Corporation.

The PBOC also pumped a net liquidity of 300 billion yuan (US$46 billion) into the financial market through reverse repurchase agreements today, the central bank said on its official website.

Automobile, consumer and financial shares were among the biggest gainers.

The automobile shares rose today after a spokeswoman for the National Development and Reform Commission, Meng Wei, said on Friday that “the commission will further open up to foreign investment in the new-energy vehicle and financial sectors in the second half of this year.”

Yangzhou Yaxing Motor Coach Co Ltd surged 9.97 percent to 14.01 yuan (US$2.15), Shenyang Jinbei Automotive Co Ltd soared 6.14 percent to 6.57 yuan and China Automotive Engineering Research Institute Co Ltd climbed 4.72 percent to end at 10.20 yuan.

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