Shanghai shares end higher on financial firms' gains
Shanghai stocks ended higher today on gains made by financial companies as investors were buoyed by China's positive economic data.
The Shanghai Composite Index rose 0.88 percent to close at 3,296.54 points.
Investors were cheered after the World Bank said today that China’s economic growth has remained strong this year, supported by rising household incomes and improving external demand. The bank said in its report that China’s economic growth is projected at 6.8 percent this year, which exceeded initial expectations.
In October, the bank predicted China's economic growth this year at 6.7 percent, 0.1 percentage point below the growth rate released today.
The bank also cited the recovery in global trade for supporting economic activity in China this year, with net exports contributing positively to growth for three consecutive quarters, a reversal from a negative contribution in 2015 to 2016.
“Business confidence has improved as well, job creation remains buoyant, capital outflows have stabilized and the renminbi has appreciated against the US dollar,” the bank said in the report.
Sentiment also rose after the People’s Bank of China injected a net liquidity of 100 billion yuan (US$15.1 billion) into the financial market via reverse repurchase agreements today, said a statement published on its official website.
Shares of financial firms, telecommunication companies and computer firms were among the biggest gainers today.
Hangzhou Freely Communication Co Ltd rose 6.75 percent to 51.90 yuan (US$7.85), New China Life Insurance Co Ltd added 6.69 percent to 68.10 yuan and Jiangsu Wujiang Rural Commercial Bank Co Ltd climbed 4.09 percent to 8.40 yuan.