Week starts with strong rally for stocks

Huang Yixuan
Overseas capital floods into the Chinese mainland markets with a net influx exceeding 12.67 billion yuan via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.
Huang Yixuan

China stocks had a strong rally on the first trading day of the week with overseas capital flooding into Chinese mainland markets.

The benchmark Shanghai Composite Index jumped 2.05 percent to 2,820.76 points, while the smaller Shenzhen Component Index surged 3.15 points to 10,428.91 points.

The ChiNext Composite Index also soared 3.31 percent to 1,969.78 points, while the blue chip CSI300 Index closed 2.28 percent higher at 3,798.02 points.

Turnover on the two major bourses in Shanghai and Shenzhen topped 732.1 billion yuan (US$103.8 billion), expanding sharply from the 572.4 billion yuan in the previous session.

Overseas capital poured into the Chinese mainland on Tuesday, with the net influx into mainland markets exceeding 12.67 billion yuan via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong. This led to an overall net inflow into the mainland year to date.

More than 150 listed companies on the Chinese mainland surged by the daily limit of 10 percent.

As for industries, sub-indexes of all industry sectors posted gains, according to data from East Money Information. The agriculture, forestry, animal husbandry and fishery industry led the rises with over 10 companies hitting the 10 percent daily cap, followed by the precious metal sector.

Food and beverage shares were also among the big gainers. V V Food & Beverage Co, Henan Kedi Dairy Co and Hunan Salt Industry Co all skyrocketed by the maximum 10 percent.

Software services shares, the aerospace sector and stocks related to digital currency all performed strongly.

Guotai Junan Securities believed that A-shares would gradually rebound amid warmer market sentiment, and expected to see strong recovery in sectors related to new infrastructure, such as new-energy vehicles and 5G.

On the STAR Market, 92 of the 94 listed companies gained, one remained flat and one declined. Zhejiang Orient Gene Biotech Co posted the biggest rise of 15.72 percent, while the only decliner, Kingsemi Co, edged down by 0.13 percent.

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