Friday sees rebound for China stock markets

Huang Yixuan
Slumps in previous sessions are reversed though the Shanghai Composite Index still posted a 2.83 percent decline for the week while total turnover expanded to 1.84 trillion yuan.
Huang Yixuan

China stocks rebounded on Friday, reversing the slumps in the previous two sessions, though it still posted losses for the week.

The benchmark Shanghai Composite Index rose 0.79 percent to 3,260.35 points, while the smaller Shenzhen Component Index jumped 1.57 percent to 12,942.95 points.

The ChiNext Composite Index, meanwhile, surged 2.16 percent to 2,536.62 points, and the blue chip CSI300 Index closed 0.99 percent higher at 4,627.28 points.

Trading volume on the two major bourses added up to 684.5 billion yuan (US$100.14 billion), shrinking sharply from the 873.2 billion yuan on Thursday, to be the lowest level since June 10. Turnover on Shanghai's main board was 254.8 billion yuan.

Overseas capital continued to flow into the Chinese mainland, with a net influx of 1.29 billion yuan in the session via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Stocks of around 50 listed firms surged by the daily limit, while 12 tumbled by the same amount.

In terms of industry sectors, electrical equipment firms led the rise. Jiangsu SINOJIT Wind Energy Technology Co, Dajin Heavy Industry Corp and Titan Wind Energy (Suzhou) Co all soared by the maximum 10 percent, while ChiNext-listed shares such as Sungrow Power Supply Co and Ginlong Technologies Co skyrocketed by the daily cap of 20 percent.

Among the listed electric equipment companies which had issued forecasts of their third-quarter performance, most expected to see positive results with higher earnings.

Semiconductor shares performed strongly, with First Semiconductor Co and JA Solar Technology Co both advancing to hit the 10 percent cap.

Stocks related to new energy also posted gains. The Asia-Pacific region is expected to add more than 170 gigawatts of new power capacity annually over the next decade, according to the China Energy Information Platform. 

As more countries are switching from fossil fuels to greener alternatives, solar and wind power will provide US$1 trillion of investment opportunities in the region over the next 10 years, equivalent to two-thirds of its electricity sector, the platform estimated.

Office supplies firms, electronic component shares, and motorcycle companies were also among big gainers, while airports, banks and the real estate sector fell.

For the week, the Shanghai Composite Index posted a decline of 2.83 percent, while total turnover expanded to 1.84 trillion yuan compared with last week’s 1.77 trillion yuan.

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