Chinese stocks rose on Thursday as real estate shares surged, bought by new local funds entering the market. Banks regained some strength after several days of heavy profit-taking in that sector.
The Shanghai composite index closed up 1.03 percent at 2,062.362 points, after hitting a new five-year intra-day high of 2,071.235. It was the index's eighth straight daily rise. Turnover on the Shanghai A-share market was a heavy 34.4 billion yuan ($4.38 billion).
"This is a market in which people are taking profits, but the stocks in focus are still rising, which shows the overall trend is still positive," said Gui Haoming at Shenyin & Wanguo Securities, predicting another index gain on Friday.
Lujiazui Financial and Trade Development Zone soared its daily 10 percent limit to 10.51 yuan. "Newly created local funds were buying into the sector. Lujiazui's 10 percent rise accounted for less than one point of the index's rise, but it encouraged investors and energised the ovrall market," said analyst Zhang Qi at Haitong Securities.
Industrial and Commercial Bank of China was up 1.79 percent at 3.97 yuan after hitting a new post-listing intra-day high of 4.01 yuan. Hua Xia Bank led the banking sector, climbing 6.88 percent to 6.37 yuan. The infrastructure theme, which became strong on Tuesday, persisted with Huaxin Cement Co up 2.88 percent at 8.22 yuan after jumping its 10 percent daily limit on Wednesday.
Baoshan Iron & Steel Co was up 1.56 percent to 6.50 yuan after saying it would keep major steel product prices for the first quarter flat from the fourth quarter. The market had generally expected this. Tianan Coal Mining surged 20.47 percent from its initial public offer price to 9.83 yuan on its first day of trade.
"The rise isn't impressive compared to listings in other sectors which might jump 50 percent on their first day, but for the coal sector it's normal," said Zhang, adding that the relatively subdued debut did not mean the market's bullish tone was weakening.
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