Shanghai shares up on last trading day of year, but annual index down

Shanghai shares closed up on the last trading day of 2018, but the benchmark index ended 24.6 percent lower in the year of 2018, its biggest annual drop since 2008.

The Shanghai Composite Index rose 0.44 percent to close at 2,493.90 points. For the month, the gauge fell 3.64 percent.

The A-share market dropped more than 24 percent in 2018 as market sentiment was weak on concern over an economic slowdown and trade tensions between China and the US. In 2017, the Shanghai Composite Index rose 6.56 percent.

Shares of brokerages, banking and consumer enterprises are among the biggest gainers on Friday. Market sentiment was lifted after Li Gang, spokesman for the China Securities Regulatory Commission, said that a standardized, transparent, open, dynamic and resilient capital market will be established through deepening reforms.

Li also said that the commission will further improve the quality of listed companies, enhance the trading system, and promote the establishment and pilot landing of a technology and innovation board on the Shanghai Stock Exchange, in order to push forward healthy development of the capital market.

The technology innovation board, announced by President Xi Jinping at the China International Import Expo earlier in November, will support Shanghai’s development as an international financial center and as a hub for science and technology. 

The new board is expected to open as soon as the first quarter of 2019, with about 20 listed firms in the first group of initial public offerings.

Investors also cheered up after the People’s Bank of China injected net liquidity of 250 billion yuan (US$36.2 billion) into the financial market via reverse repurchase agreements, a statement published on its official website read.

Zheshang Securities Co Ltd climbed 3.27 percent to 7.26 yuan and Chongqing Department Store Co Ltd climbed 2.72 percent to 28.30 yuan.