Shanghai Index crosses 3,100 line with record-high trade volume
The Shanghai stock index gained another 1.57 percent to cross the 3,100 line on Wednesday, with increased trade volume over 1.1 trillion yuan (US$164.2 billion), a record high since November of 2015.
The booming index and trade volume represent investor confidence and ample liquidity. The warm market environment came with the government’s plan to reduce tax and more overseas capital injection expectation.
The benchmark Shanghai Composite Index soared 1.57 percent to close at 3,102.1 today. The smaller Shenzhen Component Index also shot up 1.09 percent to 9,700.49 and the GEM, or Growth Enterprise Market, surged 1.43 percent to close at 1,700.50.
Total turnover on the Shanghai and Shenzhen bourses hit 1.1 trillion yuan, compared with the 900 billion yuan of the previous trading day.
In the afternoon session, the index turned to lose a few points compared with the previous day, but it began to rebound again from 2pm with increased trade volume.
High-tech and securities shares led the surge, with more than 200 shares jumping by the 10 percent daily cap, fueling capital activity and a warm market mood, analysts said.
The MSCI announced recently it will quadruple the weight of China A-shares on their global indexes, from 5 percent to 20 percent, starting May. That will lead to a US$67 billion fund inflow to the A-share market this year, according to UBS Securities' estimate.