Medicine, media boost for equity indexes

China’s main equity indexes jumped on Friday, led by the medical and cultural media industries.

At close, the benchmark Shanghai Composite Index had edged up 0.22 percent to 2,852.35 points, while the smaller Shenzhen Component Index was up 0.87 percent to 10,746.08 points.

The blue chip CSI300 Index advanced 0.27 percent to 3,867.02 points and the ChiNext Composite Index startup board surged 1.54 percent to 2,0586.67 points.

Chinese mainland markets saw a net inflow of 7.42 billion yuan in overseas capital via Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Turnover on the two major bourses was 572.3 billion yuan (US$79.88 billion), compared with 578.3 billion yuan in the previous trading session.

Most sectors rose with gainers outnumbering losers by 948 to 620 on the Shanghai bourse, and 1,277 to 858 in Shenzhen.

The medical and cultural media industries were among the biggest gainers on the day, with the former surging 3.31 percent and the latter jumping 2.64 percent.

Four medical companies hit the daily limit of 10 percent. 

Yuekai Securities said in a note: “The construction of new medical infrastructure is gaining momentum after the pandemic and medical equipment providers are the direct beneficiaries.”

Four companies in the cultural media sector also hit the daily limit.

This was boosted by news that China Broadcasting Network Corp Ltd, together with other 10 listed companies including Oriental Pearl Group Co Ltd and Jiangsu Broadcasting Cable Information Network Corp Ltd, will start a new corporation.

China Broadcasting Network Corp Ltd is the forth company obtaining the 5G licence, apart from China Mobile, China Unicom and China Telecom. 

Hua'an Securities said that "by establishing such a new corporation, other provincial broadcasting network companies can also enjoy the 5G licence."

“It shows that the integration and reform of China Broadcasting Network Corp Ltd and other provincial broadcasting network are speeding up, from which the cultural media sector will benefit," it added.