Beijing virus controls reassure investors

Shanghai stocks rose on Tuesday as investors became optimistic after the country took measures to control the latest COVID-19 cases in Beijing. 

The benchmark Shanghai Composite Index rose 1.44 percent to close at 2,931.75 points.

The smaller Shenzhen index was up 1.85 percent to 11,398.97 points while the blue chip CSI300 Index closed 1.02 percent higher at 4,014.57 points. Startup board the ChiNext Composite Index added 1.84 percent to 2,260.46 points.

Market sentiment improved after Beijing strengthened control measures to contain the spread of COVID-19. The capital has expanded the number of nucleic acid testing institutions to 98 with a capacity to test over 90,000 samples daily, the city’s health commission said on Monday.

Turnover on the two major bourses totalled 712.4 billion yuan (US$100.6 billion), a decrease of 47.2 billion yuan compared with 759.6 billion yuan the previous trading day. Turnover on the Shanghai Stock Exchange was 270.9 billion yuan, a decline of 22.5 billion yuan from the previous trading day’s 293.4 billion yuan.

On the two major bourses, the stocks of 84 listed companies surged by over 9 percent, while six declined by more than 9 percent.

In the A-share market, transport, iron and steel providers, and telecommunication companies were also among the biggest gainers.

Of the 111 firms on the STAR Market, 102 companies closed higher, while the rest retreated. 

Shanghai Haohai Biological Technology Co Ltd jumped 8.71 percent to 88.27 yuan and Chengtun Mining Group Co Ltd added 7.14 percent to 4.35 yuan.