Telecoms, petroleum leading market gains

Chinese stocks surged on Thursday, led by the telecommunication and petroleum sectors.

The benchmark Shanghai Composite Index rose 1.69 percent to 2,780.64 points, while the smaller Shenzhen Component Index increased by 2.28 percent at 10,179.20 points. The blue chip CSI300 Index advanced 1.62 percent to 3,734.53 1points.

Turnover on the two major bourses was 597.7 billion yuan (US$83.76 billion), compared with 584.8 billion yuan in the previous trading session.

Foreign buying remained robust, with Chinese mainland markets seeing a net inflow of 5.96 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

CITIC Securities said: “As the tipping point of the global pandemic likely arrives in the middle of April, global reallocation of capital will then begin. Chinese shares and government bonds are first priority.”

Most sectors gained with gainers outnumbering losers by 1,288 to 184 on the Shanghai bourse and 1,941 to 233 in Shenzhen.

Five petroleum shares hit the daily limit of 10 percent while all shares in the telecommunication sector gained.