Chinese shares rose 0.92 percent on Friday as news that Beijing will further limit large volume sales of state-owned shares, dealers said. The Shanghai Composite Index, which covers A and B shares, was up 28.11 points to 3,088.37 on turnover of 177.4 billion yuan (26.0 billion dollars). The key index has gained 5.5 percent for the week and closed at more than a one-year high.
China's state assets regulator will soon make selling state-owned shares of listed companies tougher, as part of its effort to promote market stability, the state-run Shanghai Securities News reported Friday. "The report was designed to quell investor concerns. Beijing is saying it is backing the markets," Central China Securities analyst Zhang Gang told Dow Jones Newswires.
Sentiment was also lifted by flush liquidity and hopes the Chinese economy is on the road to recovery despite turbulence in overseas markets, traders said. Wall Street fell 2.63 percent Thursday on a weak jobs report. "Stocks held up really well today considering the losses in international markets. Chinese investors are encouraged by improving domestic macro data," Essence Securities analyst Zhu Haibin said.
The official Purchasing Managers' Index, or PMI, for the manufacturing sector rose to 53.2 in June from 53.1 in May, the fourth straight month that it has been above 50, the level that indicates the sector is expanding. Blue chips rallied, with Citic Securities up 1.5 percent to 29.59 yuan. China Merchants Bank closed up 5.6 percent at 18.59 yuan, and China Cosco Holdings gained 3.6 percent to 14.31 yuan.
The Shanghai A-share index added 29.51 points, or 0.92 percent, to close at 3,242.10 on turnover of 177.0 billion yuan, while the Shenzhen A-share index gained 14.36 points, or 1.39 percent, to 1,050.77 on turnover of 89.1 billion yuan. The Shanghai B-share index rose 1.84 points, or 0.94 percent, to 197.21, while the Shenzhen B-share index gained 6.44 points, or 1.27 percent, to close at 515.38.
Comments
Comments are closed.