Stocks rise ahead of new trade talks

Huang Yixuan
Robust gains in real estate boost the markets as shares related to 5G also post increases along with most industrial sectors closing higher.
Huang Yixuan

China stocks extended their rise on Wednesday ahead of a new round of trade talks between the US and China, boosted by robust gains in real estate.

The benchmark Shanghai Composite Index advanced 0.39 percent to 2,924.86 points. The Shenzhen Component Index closed 0.34 percent higher at 9,506.56 points, while the blue chip CSI300 index edged up 0.14 percent to 3,843.24 points.

Turnover on the two major bourses added up to 365.8 billion yuan (US$51.37 billion), shrinking slightly from 373.06 billion yuan in the previous session.

Most industrial sectors closed higher, according to data from Wind Information, with several sectors picking up in the afternoon session. Stocks of nearly 40 companies listed on the A-share markets jumped sharply to hit the 10 percent daily cap.

Real estate shares continued to lead the rise, with DongGuan Winnerway Industrial Zone Co surging by the maximum 10 percent and Wedge Industrial Co soaring 8.96 percent.

Among non-ferrous metal firms which were also among the biggest gainers, JL Mag Rare-Earth Co rose by the daily limit of 10 percent while Jinduicheng Molybdenum Co closed 8.46 percent higher.

Shares related to 5G also posted increases, with Huizhou Speed Wireless Technology Co jumping by the daily cap and Eoptolink Technology Inc up 8.34 percent.

By about 9:30am on Wednesday, China Mobile, China Unicom and China Telecom had seen their pre-booked 5G subscribers reach 5,922,600, 2,003,300 and 2,078,400 respectively, to exceed 10 million in total.

The communication sector, banks, coal firms and technology shares, such as those related to domestic chip makers and photoresist companies, all posted gains.

Shares on the STAR Market rebounded on Wednesday from the earlier dip, with 28 of the 33 listed companies closing higher.

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