Shanghai shares reach the highest in 20 months today

Hu Yumo
Shanghai stocks rallied today, hitting its highest level in almost 20 months, as market sentiment was boosted by strong mid-year corporate earnings.
Hu Yumo

Shanghai stocks rallied today, hitting its highest level in almost 20 months, as market sentiment was boosted by strong mid-year corporate porformance.

The Shanghai Composite Index jumped 1.83 percent to close at 3331.52 points. For the week, the gauge gained 1.92 percent.

Investors are encouraged by interim results posted by companies which exceeded market expectation. 

Most sectors posted strong growth with more than 1 percent today. Financial shares, energy firms, coal providers and non-ferrous metals companies are among the biggest gainers.

PetroChina Co Ltd, China's largest oil and gas producer, rose 1.38 percent to end at 8.07 yuan (US$1.21) after it released a strong growth on revenue in the first half of this year. The company posted a revenue of 975.9 billion yuan (US$146.4 billion) in the first six months, up 33 percent year-on-year.

PetroChina said in the announcement that the company's financial remained stable and healthy in the first half due to an increase of oil and gas prices as well as growing demand for natural gas. The interim result posted by PetroChina Co is slightly higher than the earlier estimation and meet the market expectation, Credit Suisse AG said in a note.

Bank of Communications, one of China's top-five state-owned banks, gained 2.45 percent to 7.12 yuan. The company said it has a stable profit growth of 3.49 percent in the first half of this year.

Shanghai Securities News reported that performance of state-owned banks beat the market expectation in the first half of this year, and the 3.49 percent growth of net profit is the fastest level since 2015. 

Listed firms on A-share market including China Life Insurance Co Ltd, China Merchants Securities Co Ltd and Baoshan Iron & Steel Co Ltd all published solid first-half year interim results these two days.

Zheshang Securities Co Ltd surged by the daily limit of 10 percent to 20.01 yuan (US$3), China Life Insurance Co Ltd climbed 5.90 percent to 29.27 yuan and China Merchants Securities Co Ltd rose 3.07 percent to 18.15 yuan.

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