Medical industry leads stock prices surge
Chinese stocks surged on Tuesday, with the startup board ChiNext Composite Index increasing by almost 3 percent.
All industry sectors gained, with the medical industry leading the way.
At close, the benchmark Shanghai Composite Index rose 1.01 percent to 2,846.55 points, while the smaller Shenzhen Component Index increased by 2.10 percent at 10,815.43 points.
The blue chip CSI300 Index advanced by 1.13 percent to 3,872.77 points. The ChiNext Composite Index increased by 2.96 percent to 2,112.97 points.
Industry insiders said the surge on the startup board was attributed to booming technical shares, led by those related to Huawei.
On May 25, Huawei launched a new machine vision product, deemed as a signal the company is tapping into the intelligent security industry.
Chinese mainland markets saw a net inflow of 5.27 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.
Sinolink Securities said: “Emerging markets represented by the A-share market will continue to benefit from the loose global liquidity environment. Foreign capital flowing into China's capital market is the trend in the next one to two years.”
Turnover on the two major bourses stood at 530 billion yuan (US$ 94.91 billion), expanding from 490.6 billion yuan in the previous trading session.
The medical industry led the gains across the board with seven companies in the sector increasing by the daily limit of 10 percent.
The national development planner recently rolled out a plan to enhance public health prevention and treatment capacity. The medical industry, especially the medical equipment industry, will benefit, according to analysts.