Shanghai stocks surpass 3,000 line

The Shanghai stock index jumped 1.12 percent to surpass the 3,000 line on Monday, the first time in almost nine months, with investors optimistic about more influx capital and the coming technology innovation board.

The benchmark Shanghai Composite Index soared 1.1 percent to 3,027.6 points, the first time since June of 2018. The smaller Shenzhen Component Index also shot up 2.4 percent, to 9,384 points.

The total turnover on Shanghai and Shenzhen bourses hit 1.05 trillion yuan (US$156.7 billion), compared with 664.41 billion yuan in the previous trading day on Friday.

The “warm” marketing emotion has fueled an index rebound in recent days, with coming MSCI capital influx and a new tech-savvy board, according to Essence Securities.

Home appliances, 5G and shares with smaller market value led the surge on Monday, when the Shanghai Index hit the intraday high close to the 3,100 line.

China is mulling a national blueprint to support super high-definition content transmission and broadcasting, which fuels stocks of TV, LCD panel, broadcasting network and telecommunications, including 5G sectors.

Sichuan Chonghong Electric surged the 10 percent daily cap to 3.16 yuan, while Qingdao Hisense Electronics also jumped 10 percent to hit 10.66 yuan. TCL Group, which focuses on LCD panels, gained 4.86 percent to close at 3.45 yuan.

Beijing Gehua CATV Network gained 10 percent to close at 11.72 yuan, while People.cn also surged the 10 percent daily cap.

During the weekend, China released regulations on the science and technology innovation board, which pilots a registration-based initial public offerings system.

The new board represents the government’s decision and confidence to improve the Chinese capital market, including the stock market. It means that the stock won’t tremble like last year, industry insiders said.

The MSCI announced recently it will quadruple the weight of China A-shares on their global indexes, from 5 percent to 20 percent, starting May. That will lead to a US$67 billion fund inflow to the A-share market this year, according to UBS Securities' estimate.