Construction, decoration boost stock market

Huang Yixuan
Trading volume on the two major bourses continues to exceed 1 trillion yuan though Monday's 1.16 trillion yuan was down compared with the previous session's 1.26 trillion yuan.
Huang Yixuan

Shanghai stocks closed higher on Monday, led by gains in construction and decoration shares as well as the real estate sector.

The benchmark Shanghai Composite Index rose 0.75 percent to 3,379.25 points and the smaller Shenzhen Component Index edged up 0.06 percent to 13,657.31 points.

The ChiNext Composite Index, however, dipped 0.53 percent to 2,375.26 points, while the blue chip CSI300 Index closed 0.36 percent higher at 4,724.87 points.

China's factory-gate deflation eased in July compared with the previous month, driven by higher prices of oil and other major raw materials as the global economy, including the Chinese economy, recovered from the worst phase of the pandemic, which to some extent boosted investors’ confidence.

Trading volume on the two major bourses continued to exceed 1 trillion yuan, adding up to 1.16 trillion yuan (US$116 billion) on Monday although shrinking from the 1.26 trillion yuan in the previous session.

Overseas capital flowed into the mainland markets, posting a net influx of 7.37 million yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

In terms of individual shares, over 110 listed companies posted gains of more than 9 percent, while 31 stocks declined by over 9 percent.

Among industries, construction and decoration shares performed strongly, with Sinoma International Engineering Co, Zhejiang Communications Technology Co and China Nuclear Engineering Corp all surging by the daily limit of 10 percent.

Shares related to China Broadcasting Network also posted large rises. Shaanxi Broadcast & TV Network Intermediary Group Co and Beijing Gehua CATV Network Co both soared by the maximum 10 percent.

Education companies gained as well, with Talkweb Information System Co advancing 8.01 percent and Offcn Education Technology Co up 6.35 percent.

The pharmaceutical sector, brokerages and insurance companies were all among the gainers.

On the STAR Market, 92 of the 147 listed companies closed higher, one remained flat, while the rest posted declines. Memsensing Microsystems (Suzhou) Co skyrocketed by 269.4 percent, while Qingdao Gaoce Technology Co lost the most by 17.64 percent.

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