Bourses close higher, led by agriculture related stocks
China’s A-share markets closed higher Wednesday, as investors were greatly encouraged by the central government vow a day earlier to boost rural prosperity.
The benchmark Shanghai Composite Index advanced slightly by 0.2 percent, or 5.57 points, to finish at 2,761.22, after going through ups and downs during the trading hours.
Agriculture related listed companies led the rises, with shares of Shandong Yisheng Livestock&Poultry Breeding Co Ltd hitting the daily 10 percent cap on price rises to stand at 26.03 yuan (US$3.86) per share.
The smaller Shenzhen Component Index advanced 0.39 percent to end at 8,473.43 points, while the ChiNext Index, China’s Nasdaq-style board of growth enterprises, was up 0.17 percent to finish at 1,408.38 points.
And the gains came after the Chinese central government pledged on Tuesday that it will endeavor to fulfill “quite a few tough tasks” in the fields relating to agriculture, rural areas and rural people during the decisive period for completing the construction of a moderately prosperous society in all respects, according to Xinhua news report.
And the move greatly buoyed investors’ sentiment during the trading sessions.
The stock rally was also boosted by the strong gains of Chinese yuan.
On Wednesday, both the onshore and offshore Chinese yuan saw strong gains on the back of a Bloomberg report that the Washington is requesting Beijing to keep its currency stable as part of the incoming trade talks.
The onshore Chinese yuan was traded at 6.7236 against the greenback, up by 439 basis points compared with the previous day. And the currency even hit a high of 6.7182 during the trading hours.
The offshore Chinese yuan also gained to 6.7252 against the dollar.
Liao Zongkui, an analyst at Lianxun Securities, was quoted by Caixin.com as saying that as China vowed to step up breakthroughs in key agricultural technologies and cultivate more tech start-ups in the agriculture area, investors should pay more attention to related stocks in the near term.