Real estate firms boost market increases

Shanghai stocks extended gains on Wednesday to close above 3,000 points, with the real estate sector performed strongly.

The benchmark Shanghai Composite Index advanced 0.63 percent to 3,011.67 points, while the smaller Shenzhen Component Index edged up 0.08 percent to 11,493.02 points. The blue chip CSI300 Index closed 0.58 percent higher at 4,115.05 points.

The ChiNext Composite Index, however, shed 0.18 percent to end at 2,169.44 points.

Trade volume on the two major bourses totaled 992 billion yuan (US$142 billion), shrinking sharply from the 1.18 trillion yuan in the previous session. Turnover on the Shanghai market declined 57.2 billion yuan to 389.9 billion yuan.

Despite overseas capital continuing to pour into the Chinese mainland near the close of trading day, the mainland market still saw a net outflow of 781 million yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong at the closing bell.

Stocks of around 120 companies surged by the daily limit of 10 percent, with more than 10 of them in the real estate industry, including Lushang Health Industry Development Co, YunNan Metropolitan Real Estate Development Co and Ningbo Fuda Co.

Several brokers recently posted their "gold stocks" reports highlighting the potential in the real estate sector and those related to "new infrastructure.”

Commercial and retail shares also led the gains, with Hunan Friendship & Apollo Commercial Co, Fujian Oriental Silver Star Investment Co and Yonghui Superstores Co all soaring by the daily cap.

Construction companies and building material firms also extended their rises. Non-bank financial shares, the agriculture, forestry, animal husbandry and fishery sector as well as food and beverage companies all performed well, while electronic firms and computer companies posted declines.

On the STAR Market, 34 of the 91 listed companies gained, one remained flat, while the others closed lower.