Shanghai index closes above 3,000 points on favorable policies

Tracy Li
China's A-share stocks continued to rise on Friday, as investor sentiment was boosted by favorable news.
Tracy Li

China’s A-share stocks continued to move up on Friday, as sentiment was boosted by a series of favorable news stories.

The benchmark Shanghai Composite Index edged up 0.50 percent, or 14.86 points, to finish at 3,001.98, the first time to be above 3,000 points since April 30 of this year.

The smaller Shenzhen Component Index gained 0.87 percent to end at 9,214.27, while the ChiNext Index added 1.72 percent to finish at 1,523.81.

The combined turnover of the two bourses came to 621.8 billion yuan (US$90.73 billion), up from the previous trading day’s figure of 602.9 billion yuan.

The market saw broad-based rises, with companies in areas like computer and communications as well as military defense being the leading gainers.

Shares of Shenzhen Dvision Co Ltd, a company principally engaged in the provision of customized video communication integrated solutions for private network users, rose by the daily cap of ten percent to close at 5.34 yuan per share.

After trading hours on Friday, FTSE Russell, the world's second-largest index service provider, began to promote eligible large-, mid- and small-cap designated A-shares to emerging market status.

The move will lift market confidence in the short term, promote internationalization of A-shares and invite more institutional investors into domestic capital markets.

On late Thursday, China Securities Regulatory Commission announced that it had begun to solicit public opinion on revising major asset restructuring rules for listed companies.

The regulator plans to cancel the "net profit" index in the listing criteria for restructurings and support listed companies to integrate resources through mergers and acquisitions.

It will also lend support to companies in high-tech and strategic emerging industries on the Nasdaq-style Growth Enterprise Market board to restructure.

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