Shanghai shares close at highest since 2015

Positive economic data and the Chinese central bank's efforts to boost liquidity in the financial market also buoy investor sentiment.

Shanghai shares closed today at their highest since December 31, 2015, as investors were buoyed by positive economic data and the Chinese central bank’s efforts to boost liquidity in the financial market.

The Shanghai Composite Index added 0.39 percent to close at 3,501.36 points.

Investors were cheered after the National Development and Reform Commission said today that China’s economic growth expanded at a higher-than-expected 6.9 percent to 82.71 trillion yuan (US$12.85 trillion) in 2017.

“China’s economy has been steadily improving last year. The country has achieved good progress in terms of supply-side structural reform, with quality and efficiency of economic development continuing to improve,” said Yan Pengcheng, an NDRC spokesperson during a conference in Beijing this morning.

The economy's 6.9 percent growth in 2017 is above the government’s official target of 6.5 percent, and also above the GDP growth of 6.7 percent in 2016.

China International Capital Corporation said in a research report that the key stock index rose due to stable economic data and improved liquidity conditions. CICC pointed out the A-share market is expected to continue trending up, citing a good economic environment and increasing profits in most sectors.

Market sentiment also rose after the People’s Bank of China injected a net liquidity of 110 billion yuan (US$17.18 billion) into the financial market via reverse repurchase agreements, according to a statement published on its official website today.

Household electrical appliance suppliers, consumer shares and non-ferrous metal providers were among the biggest gainers today, with the Spring Festival approaching. 

Qingdao Haier Co Ltd surged 8.13 percent to 22.87 yuan (US$3.57), Fujian Anjoy Foods Co Ltd rose 6.61 percent to 25.32 yuan and Yonghui Superstores Co Ltd added 6.14 percent to 11.55 yuan.

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