Shares rise as govt acts on economy

Shanghai shares rose yesterday as market sentiment was lifted by news the government will further step up support for the economy next year and also on the Chinese central bank’s liquidity boost for the banking system.

The Shanghai Composite Index added 0.43 percent to close at 2,527.01 points.

Shares of telecommunications firms, electronics manufacturing companies and pharmaceutical companies were among the biggest gainers.

Telecommunications shares rose after the government said during the Central Economic Work Conference, an annual official summit to set the agenda for the banking and financial sectors, that China will further accelerate the commercialization of 5G technologies as well as construction of infrastructure facilities for artificial intelligence, industrial Internet and the Internet of Things, according to the State Council Information Office.

China will keep economic growth within a reasonable range and continue to implement its proactive fiscal policy and a prudent monetary policy, according to a statement issued after the meeting.

Market sentiment improved after the government said during the Central Economic Work Conference that the country has deepened supply-side structural reforms, pushed forward reform and opening-up with greater efforts, properly dealt with Sino-US economic and trade frictions, improved people's wellbeing and maintained sustained and healthy economic development as well as overall social stability, as Xinhua reported.

Investors were also cheered by the central bank’s injection of 20 billion yuan (US$2.9 billion) into the financial market through reverse repurchase agreements yesterday announced by the central bank on its website.

Shares related to 5G technologies jumped yesterday. Guangdong Super Telecom Co Ltd surged by the daily limit of 10 percent to 26.36 yuan (US$ 3.82) and Nanjing Huamai Technology Co Ltd rose 6.11 percent to 16.68 yuan.