Financial shares help with market rebound

Huang Yixuan
The ChiNext Composite Index advances 0.36 percent to 2,650.63 points while turnover rises to 337.5 billion yuan to be higher than that on Shanghai's main board for the first time.
Huang Yixuan

China stocks rebounded on Tuesday, boosted by strong performance of financial shares, while turnover on the ChiNext board was higher than Shanghai’s main board.

The benchmark Shanghai Composite Index rose 0.72 percent to 3,316.42 points, while the smaller Shenzhen Component Index edged up 0.07 percent to 13,293.33 points.

The ChiNext Composite Index, meanwhile, advanced 0.36 percent to 2,650.63 points, and the blue chip CSI300 Index closed 0.54 percent higher at 4,694.39 points.

Trading volume on the two major bourses shrank to 924.4 billion yuan (US$135.25 billion) from 1.02 trillion yuan in the previous session, of which that on Shanghai's main board totaled 320.2 billion yuan. 

Turnover on the ChiNext board swelled to 337.5 billion yuan, to be higher than that on Shanghai's main board for the first time.

Overseas capital poured into the Chinese mainland during the session. The mainland markets saw a net influx of over 6.35 billion yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong, reversing net outflows for the previous six sessions in a row.

In terms of individual stocks, shares of over a hundred listed firms gained strongly by over 9 percent, while 24 declined by the same amount.

Among industry sectors, banks performed well on Tuesday, with Bank of Hangzhou Co jumping nearly 8 percent, while Bank of Chengdu Co, Jiangsu Changshu Rural Commercial Bank Co and Ping An Bank Co all rose by over 3 percent.

The non-bank financial sector also led the gains. Among brokerages were Polaris Bay Group Co advancing 7 percent and China Securities rising 4.74 percent. As for insurance companies, New China Life Insurance Company jumped 7.75 percent, while China Life Insurance Company ran up nearly 6 percent.

Shares related to environmental protection were also among the big gainers, partly due to the implementation of the "Law of the People's Republic of China on the Prevention and Control of Solid Waste Pollution" on September 1.

 Inner Mongolia M-Grass Ecology And Environment Group Co and Xiamen Zhongchuang Environmental Technology Co, which were listed on the ChiNext board, both surged by the daily limit of 20 percent. 

Coal firms, the electric power sector, and stocks related to cloud games also performed strongly, while liquor companies and precious metal shares posted declines.

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