Winning streak continues for Shanghai stocks

Ding Yining
Benchmark index hits one-year high after closing another week in positive territory. Airline shares among biggest winners as daily turnover rises.
Ding Yining

Shanghai stocks closed the week's trading after a four-day winning streak and a weekly gain of 5.04 percent.

The benchmark Shanghai Composite Index picked up 0.94 percent to end at 3,246.57 points on Thursday, with turnover rising to 475 billion yuan (US$69.9 billion).

The index closed the day at a one-year high and has advanced 31 percent since the beginning of 2019. This was also the 13th week which saw the index end in positive territory.

Airlines were among the day's big winners. Shanghai-headquartered China Eastern Airlines surged to the daily limit of 10 percent and China Southern Airlines jumped 9.29 percent.

The securities watchdog is pondering looser restrictions on listed companies' spin-off plans, according to a 21st Century Business Herald report citing unnamed sources from investment banks.

Fidelity International investment director Medha Samant said in an interview with CNBC that emerging market stocks, including those in China, are still under-allocated in global investors' equity portfolios. He added that the Asian economy is "still in good shape" in terms of the strength of domestic consumers and business health.

Founder Securities suggests that investors focus on companies with improving earnings, such as those in the food and beverage sector, real estate developers and mechanical and engineering firms.

Brokerages showed mixed results. Industrial Securities climbed 3.81 percent while China Merchant Securities shed 0.49 percent to 18.40 yuan. Haitong Securities lost 1.0 percent.

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