Travel sector shares rally boosts market

China’s A-share markets closed higher on Friday, with travel and airline companies experiencing strong rallies.

Markets opened higher but drifted lower later in morning trading. Supported by the gains of security brokers, the benchmark Shanghai Composite Index climbed 0.40 percent to end the day on 2,930.80 points.

The smaller Shenzhen Component Index settled 0.37 percent higher at around 11,180.60 points, while the ChiNext Index edged up 0.7 percent to finish on 2,166.38.

The combined turnover of the two bourses came to 631.5 billion yuan (US$89.1 billion), compared with the previous day’s 650.6 billion yuan.

Leisure service providers led the gains, with the transport and media sectors among the top performers.

China International Travel Service saw its shares jump by 6.50 percent to close at 106.41 yuan per share.

The rebound in the airline industry came as domestic flight routes continue to recover and international routes resume, together with low oil prices, analysts said.

On Thursday, China’s civil aviation regulator adjusted policies for international flights, allowing more foreign carriers to resume flights to China on a once-a-week basis from June 8.