Technology names boost trade in A-shares

China’s A-share markets closed higher on Wednesday, with electronics makers and communications companies leading the gains.

Clouded by fluctuations in international capital markets during the holidays, stocks opened lower. The benchmark Shanghai Composite Index gained 0.63 percent to end its trading day at 2,878.14 points as investors became more optimistic in the afternoon.

The smaller Shenzhen Component Index settled 1.51 percent higher at 10,883.22 points, while the ChiNext Index surged 1.97 percent to finish at 2,110.27 points.

The recoveries came as traders were boosted by the strong performance of technology names, especially in the electronics and communications sectors. Automakers and nonferrous metals companies were among the top performers.

The combined turnover of the two bourses came to 721.1 billion yuan (US$101.7 billion), compared with the previous trading day’s 679 billion yuan.

STAR Market-listed semiconductor companies, including National Silicon Industry Group Co Ltd, Anji Microelectronics Technology (Shanghai) Co Ltd and Giantec Semiconductor Corp, saw their shares jump by 20 percent.

Analysts predict that China's capital market will be generally stable and resilient in the face of severe turbulence in the global financial market and investors’ appetite for risk is expected to increase this month as the overall valuation of A-shares is still attractive.