China shares rise amid trading enthusiasm

Tracy Li
China's stock market entered into positive territory on Wednesday with the Shanghai Composite Index rising 1.05 percent as investors showed strong enthusiasm for transactions.
Tracy Li

China’s stock market entered into positive territory on Wednesday as investors showed strong enthusiasm for making transactions.

The benchmark Shanghai Composite Index rose 1.05 percent to close at 3,414.45, lifted mainly by liquor and beer shares.

The smaller Shenzhen Component Index advanced 1.66 percent to finish at around 14,201.57, while the ChiNext Index climbed 3.11 percent to end the day at 2,900.54.

Combined turnover on the two bourses came to 847 billion yuan (US$129.7 billion), compared with 859.7 billion yuan in the previous session. Over 6 billion yuan of Northbound funds flowed into the market through the Stock Connect program.

The gains were broad-based, with electric equipment manufacturers, food and beverage firms as well as non-ferrous companies among the top gainers.

Kweichow Moutai Co, China's iconic high-end spirit maker, saw its share price rise 3.54 percent to close at a new high of 1,933 yuan per share.

Essence Securities said that for the current A-share market, domestic economic fundamentals and liquidity are no longer the main fluctuation factors. Instead, investors’ short-term risk appetite and medium-term overseas economic recovery outlook will become the key factors affecting the market trend.

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