Lifted market sentiment sees Shanghai stocks jump 2 percent

Shanghai stocks jumped more than 2 percent on Friday as market sentiment was lifted by government support for private businesses.

The Shanghai Composite Index rose 2.70 percent to close at 2,676.48 points. 

Shares of brokerages, insurance companies and telecommunication firms are among the biggest gainers on Friday. 

Investors were buoyed after President Xi Jinping said on Thursday that the country will unswervingly encourage, support and guide the development of the non-public sector and support private enterprises to develop toward a broader stage.

Japanese investment bank Nomura said in a report that these latest moves by President Xi were an apparent effort to boost market confidence, which will improve the business environment, address existing difficulties and encourage research and innovation. 

More than 40 private business owners attended the meeting, 10 of whom provided comments and suggestions on how to better support the development of private enterprise. 

Nomura said that the representatives were mainly from the manufacturing sector, especially relatively high-tech sectors, including information technology, artificial intelligence, special materials, auto parts, energy conservation, environmental protection and pharmaceutical industries.

Caitong Securities rose 6.40 percent to 8.48 yuan (US$1.23) and New China Life Insurance added 6.27 percent to 49.63 yuan.