Solar shares surge, leading Chinese markets higher
Chinese stocks extended their rally on Wednesday, as almost all sectors performed strongly on the day.
As of close, the benchmark Shanghai Composite Index was up 0.87 percent to 2,926.90 points, while the smaller Shenzhen Component Index surged 1.60 percent to 10,940.80 points. The blue chip CSI300 Index advanced 0.81 percent to finish at 3,984.43 points.
Tech stocks led the gains, with solar battery shares surging by 8.85 percent and electric component shares increasing by 5.74 percent.
Twenty-three firms related to photovoltaics hit the daily limit of 10 percent. Ningbo Solartron Technology Co Ltd, Shenzhen Topraysolar Co Ltd, Cecep Solar Energy Co Ltd and Jiawei Renewable Energy Co Ltd all hit the daily cap.
The gains were attributed to Tesla CEO Elon Musk, who recently tweeted that his photovoltaic business will soon enter the Chinese and European markets.
Stimulated by Musk’s comments, shares related to photovoltaics surged in both the A-share and Hong Kong markets.
Electric component shares also posted robust performances, with Giantec Semiconductor Corporation, Routon Electronic Co Ltd and Fuzhou Rockchip Electronics Co Ltd advancing by the daily limit.
Citic Securities noted that tech shares will play a leading role in the market this year, and this will not change due to the epidemic outbreak.
Only steel shares edged down, losing an average of 0.17 percent.
On the SSE STAR Market, 82 of 83 listed companies post gains. Newly listed Beijing InHand Networks Technology Co Ltd led STAR Market gains.