Mainland markets jump after US, HK rate moves

China’s A-share markets gained on Thursday, bolstered by the robust performances of electronics and communication companies.

The benchmark Shanghai Composite Index was 0.46 percent higher to finish at 2,999.28 points after market sentiment turned bullish during afternoon trading.

The smaller Shenzhen Component Index gained 1.01 percent to close at 9,852.20 points, while the ChiNext Index jumped 1.57 percent to finish at 1,705.60 points.

Combined turnover of the two bourses came to 491.4 billion yuan (US$69.1billion), compared with the previous trading day’s volume of 487.1 billion yuan.

Amid broad-based gains, electronics makers took the lead, followed by leisure service providers, national defense companies as well as communication stocks. Shares of Suzhou Crystal Clear Chemical Co Ltd, a company that produces and sells chemical products for the microelectronics industry, surged by the daily limit of 10 percent to close at 22.23 yuan per share.

The US Federal Reserve cut its benchmark overnight interest rate by 25 basis points to a range of 1.75 percent to 2 percent, a move that was widely expected by the market. It is the second time this year the central bank has lowered rates.

Following the Fed decision, the Hong Kong Monetary Authority announced on Thursday that it has adjusted its base rate downward by 25 basis points to 2.25 percent.

Also on Thursday, Shanghai State-owned Assets Supervision and Administration Commission announced that by 2022, the city will establish a state-owned assets supervision system with capital management as its main focus.

At present, more than 20 specific operation plans for reform projects have been formed and are being pushed forward one by one, covering areas like state-owned assets distribution, industrial integration and overall listing, the local authority said.