Stocks rally on trade figures
China’s A-share markets rebounded on Thursday, as the country’s foreign trade posted better-than-expected numbers in July.
The benchmark Shanghai Composite Index rose by 0.93 percent, or 25.87 points, to finish at 2,794.55.
The smaller Shenzhen Component Index gained 1.19 percent to close at around 8,919.28 points, while the ChiNext Index was up 1.51 percent to finish at 1,522.97 points.
The combined turnover of the two bourses came to 367.1 billion yuan (US$52.01 billion), compared with the previous trading day’s volume of 376.3 billion yuan.
Defense sector led the gains, with consumption, banking, food and beverage shares also recording big rises.
Shares of Jianglong Shipbuilding, Changshu Ruite Electrical Co Ltd and CSSC Science & Technology Co Ltd all jumped by the daily cap of 10 percent.
Two new stocks were listed on the STAR Market on Thursday and both closed more than 200 percent higher.
Investor sentiment was boosted by favorable trade data.
In July, thanks to increased exports to ASEAN and EU markets, China’s US dollar-denominated exports rose 3.3 percent from a year ago, while its imports fell 5.6 percent during the same period.
The country’s overall trade surplus last month stood at US$45.06 billion, said the General Administration of Customs.
For the first seven months, foreign trade of goods grew 4.2 percent year on year to hit 17.41 trillion yuan, with exports and imports increasing by 6.7 percent and 1.3 percent, respectively, year over year, to reach 9.48 trillion yuan and 7.93 trillion yuan.
Early on Thursday, global index compiler MSCI Inc said in its quarterly index review that it would increase the weighting of China's large-cap A shares in its global benchmarks from 10 percent to 15 percent and the decision would be effective as of the close on August 27.
Analysts estimated that the move would bring about 140 billion yuan of incremental capital to A-shares and predicted that more foreign capital would flow into China.