Approval for ETFs raises market sentiment

Hu Yumo
China stocks rise after the securities regulator approves the first batch of exchange-traded funds, with trading volume on the two major bourses totalling 769.4 billion yuan.
Hu Yumo

China stocks rose on Monday, led by gains among new material and tourism companies.

The benchmark Shanghai Composite Index added 0.57 percent to close at 3.278.81 points while the smaller Shenzhen Component Index rose 0.61 percent to 13,021.99 points.

Market sentiment lifted after the securities regulator approved the first batch of exchange-traded funds (ETFs), which are expected to draw fresh funds to the market.

Trading volume on the two major bourses added up to 769.4 billion yuan (US$112.79 billion), compared with Friday’s 684.5 billion yuan. Turnover on Shanghai's main board was 269.2 billion yuan, an increase of 14.4 billion yuan over the previous trading day’s 254.8 billion yuan.

A total of 147 listed firms posted gains of more than 9 percent, while 11 declined by over 9 percent.

Guotai Junan Securities said investors' interest had improved and suggested continuing to pay attention to consumer shares, including electronics, liquor makers and new-energy vehicles. 

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