China stocks soar

13 Jul, 2016

China stocks posted solid gains on Tuesday, shaking off a weak morning session as investors bought shares in the finance and manufacturing sectors.
Analysts said investors were buying index heavyweights as they weighed a global equity rally against looming uncertainties at home and abroad, including a ruling on the Phillippines' South China Sea arbitration case due later on Tuesday and China's second-quarter GDP data due on Friday.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.2 percent to 3,273.18 points, while the Shanghai Composite Index gained 1.8 percent to 3,049.38.
"There hasn't been much a constant trend for the past few sessions," said Zhang Gang, analyst at Central Securities in Shanghai.
"The market is essentially waiting for information, especially for further details on how announced structural reforms are going to play out in practice," he said. "The Chinese market is a bit different, and doesn't receive as much influence from the global situation."
China's second quarter GDP growth is expected to come in at 6.6 percent on the year according to a Reuters poll of 61 economists. That would be the weakest figure in seven years.
The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 131.00.
A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.

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