Chinese stocks lifted by Shanghai index reforms
Chinese equities rose on Wednesday, bolstered by market reforms.
At close, the Shanghai Composite Index increased by 0.37 percent to 3,333.16 points. The Shenzhen Component Index advanced by 0.89 percent to 13,657.03 points, the tech-heavy ChiNext Composite Index climbed 1.19 percent to 2,769.03 points and the blue chip CSI300 index edged up 0.50 percent to 4,714.45 points.
The Shanghai index was revised on Wednesday for the first time in 30 years, including STAR Market-listed tech companies, kicking out high-risk firms and delaying inclusion of newly listed stocks.
To mark the first anniversary of Shanghai’s STAR Market, China also officially launched the STAR 50 Index for top-listed firms. The new STAR 50 Index is expected to attract more investment and liquidity to the market, according to media reports.
The Shanghai Stock Exchange said in a note, “The revised index can more accurately represent the overall performance of the SSE market after more scientific compilation.”
It added, “The implementation of the revised methodology of the SSE Composite Index will affect neither the continuity of the index, nor investors' observation of market conditions.”
Li Daxiao, chief economist of Yingda Securities, said, “The revision responds to the strong demands of investors and boosts their confidence. The Chinese market is ushering in a new era, when real economic growth and performance of listed firms will be reflected.”
Turnover on the two major bourses topped 1.2 trillion yuan (US$171.8 billion). It was the 15th session in a row with more than 1 trillion yuan in turnover.
Most sectors gained, but losers outnumbered gainers by 860 to 762 on the Shanghai bourse and 1,118 to 1,051 in Shenzhen.
Leading the gains, precious metals rose 2.96 percent with all listed firms in the sector gaining.