Stocks reversing the slumps of last week
China stocks posted a strong rally on Monday, reversing the slumps of last week, led by sharp gains in the infrastructure sector.
The benchmark Shanghai Composite Index surged 3.15 percent to 2,970.93 points, while the smaller Shenzhen Component Index jumped by 3.65 percent to 11,381.76 points. The ChiNext Composite Index, meanwhile, closed 3.08 percent higher at 2,135.42 points, and the blue chip CSI300 Index soared 3.29 percent to 4,069.67 points.
Turnover on the two major bourses added up to 1.03 trillion yuan (US$147.65 billion), compared with the previous session’s 1.13 trillion yuan.
Overseas capital flowed into markets on the Chinese mainland, with the net influx via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong exceeding 4.15 billion yuan, reversing the earlier net outflows for six consecutive sessions.
Over 200 listed companies gained the daily maximum of 10 percent in the session.
Among all industries, the construction sector led the way, according to data from Wind Information, with shares of more than 30 companies surging by the daily limit, including Longjian Road & Bridge Co, Changjiang & Jinggong Steel Building (Group) Co and Tengda Construction Group Co
Meanwhile, nearly 20 building material firms, including Xinjiang Qingsong Building Materials and Chemicals Group Co and Sichuan Golden Summit Group Joint-Stock Co, also posted strong gains hitting the 10 percent cap.
Communication shares were also among the biggest gainers, and the engineering sector, iron and steel firms and computer companies all performed well.
On the STAR Market, 86 of the 91 listed companies gained, while the others posted declines. Shares of Traffic Control Technology Co saw the biggest rise of 20 percent, hitting the daily limit on the board.
The overall A-share market rebounded from earlier losses, as the negative impact of overseas epidemic outbreaks on the Chinese mainland was relatively limited, and the A-share market will be back to normal in line with its own fundamentals, Guotai Junan Securities said in a note.