Shanghai stocks show five day growth
Shanghai stocks rose on Friday for the fifth trading day in a row, boosted by policies on agricultural development and enhancing construction at Xiongan New Area.
The Shanghai Composite Index added 0.63 percent to 3,289.02 points.
Crop farming firms led the growth, with Gansu Dunhuang Seed Co jumping by the daily limit of 10 percent to 7.01 yuan (US$1.11).
Meanwhile, stocks linked to Xiongan New Area advanced broadly to bolster the market, with Beijing Hanjian Heshan Pipeline Co soaring 10 percent to 13.4 yuan, and Center International Group Co gaining 7.99 percent to 16.76 yuan.
Crop farming and forestry sectors were buoyed after the Ministry of Agriculture said that China’s arable land covered under crop rotation measures will exceed 50 million mu (around 3.3 million hectares) by 2020. Crop rotation and fallow systems are measures to facilitate the green development of agriculture.
Stocks expected to benefit from the development of Xiongan New Area, meanwhile, surged as the central party committee said yesterday that the government should speed up construction in the area amid policies to enhance reform there.
Li Shaojun, analyst at Guotai Junan Securities, said investor sentiment has recovered from a downturn at the end of last year, boosted by policy announcements, and sentiment is likely to stay high as the upcoming “two sessions,” the top political conferences, will highlight more opportunities for investors.
The stock market has climbed for two days after it resumed trading after the week-long Lunar New Year holiday, extending rallies before suspension.
Securities such as Shenwan Hongyuan and Minsheng said that showed a rebound of confidence among investors “as funds started to flow back to the market amid the increase of new policies,” but risks remain high as turnover remains relatively low.
Alongside these policies, investors should also find opportunities when most of the listed companies release annual reports in the coming days, Minsheng Securities said.