Technology shares lead stock market rise

Rich Zhu
Trading volume on the Shanghai and Shenzhen bourses totals 999.9 billion yuan while the GEM index rises 1.15 percent after hitting a three-year high on Monday.
Rich Zhu

Shares in Shanghai edged up slightly on Tuesday while Shenzhen stocks continue climbing. 

The benchmark Shanghai Composite Index closed 0.05 percent higher at 2,984.97 points. The Shenzhen Component Index was up 0.58 percent to 11,306.49 points. 

Trading volume on the two bourses totaled 999.9 billion yuan (US$142.8 billion), compared with 937.2 billion yuan in the previous trading day. 

The GEM (China Growth Enterprise Market) index jumped 1.15 percent to 2170.95 points after hitting a three-year-high on Monday. On the SSE STAR Market, 48 of its 87 shares gained. 

The market remains optimistic, seeing the ongoing coronavirus epidemic as a short-term disturbance only. 

Shenzhen-listed firms, especially tech firms, are more active, CITIC Securities said in a note.

Technology firms, especially semiconductors, 5G, artificial intelligence and Apple-related shares, led the surge on Tuesday. Huafeng Test & Control, a semiconductor testing equipment maker, surged 216.55 percent to 340.0 yuan during its debut on the STAR Market.

The company's IPO share price of 107 yuan was already a record for the growth-oriented STAR Market. 

Some shares related to consumer electronics, semiconductors, new energy cars and the medical sector still have potential, CITIC Securities said. 

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