Leisure service and medicine shares fuel market rally
Chinese stocks continued to rally on Friday, led by the leisure services, medicine and household appliance sectors.
After a lower opening, the benchmark Shanghai Composite Index gained 1.60 percent to end its trading day at 3,403.81 points.
The smaller Shenzhen Component Index jumped 2.34 percent to 13,851.32 points, while the ChiNext Index rallied 2.55 percent to close at 2,757.84 points.
Combined turnover on the two bourses came to 947.8 billion yuan (US$138 billion), compared with the previous day’s volume of 837.8 billion yuan.
Gains were broad-based, with tourism, medicine and household appliance stocks emerging on top thanks to rosy interim results.
Jiang Huawei, an analyst at Sinolink Securities, told Caixin that the main external factors disturbing the current A-share market are Sino-US relations and the overseas epidemic situation.
Looking forward to September for A-shares it is necessary to focus on liquidity and sector rotation, the analyst said.
Jiang further stated that although there will be no abnormal easing in domestic monetary policy, it will remain "flexible and moderate."