Shanghai shares close higher on rise in profits for industrial firms

Shanghai shares closed higher today after investors were buoyed by data showing profits grew steadily for China's industrial enterprises in the first seven months  of the year.

The Shanghai Composite index jumped 1.89 percent to close at 2,780.90 points — its biggest daily percentage gain since August 7. 

For the first seven months of this year, profits of China's industrial enterprises soared 17.1 percent from the same period last year to  3.9 trillion yuan (US$ 570 billion), data from the National Bureau of Statistics showed today.

He Ping, an official at the bureau, said that industrial profits continued to grow rapidly amid deep supply-side structural reform and strong business performance.

Oil, iron and steel, building materials and chemical companies posted huge gains in industrial growth in the first seven months of this year.

Shares of telecommunication companies and electronics firms were among the biggest gainers. The telecom sector added 3.68 percent, while electronic producers climbed 2.74 percent.

Shenzhen Kinwong Electronic Co Ltd surged 6.47 percent to 58.88 yuan and Fiberhome Telecommunication Technologies Co Ltd rose 5.12 percent to close at 31.40 yuan.

Qin Hong, analyst with Jingbailing Consulting, said that investors turned optimistic over the A-share market as half-year financial reports revealed that listed companies performed well in their business operations.