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Shanghai and Shenzhen Stock Exchanges Surge Amid Hefty Buying Spree

Strategic Insights

— 1 min read

Investors in Shanghai and Shenzhen rapidly shifted their focus to heavyweights with low valuation, prompting a significant surge in the main indices. The sudden shift in focus was driven by anticipation of half-year reports from prominent corporations, including PetroChina, Industrial and Commercial Bank of China, and Agricultural Bank of China. These reports were expected to surpass market expectations, fueled by the success of China Unicom, which reported a 8% year-on-year growth in net profit thanks to a growing number of mobile phone and broadband subscribers. The surge in the stock market led to a buying spree, with combined turnover expanding to 190.06 billion yuan from 146.8 billion yuan in the previous trading day.

Key Takeaways:

  • The Shanghai Composite Index surged 2.92% to close at 2,615.26 points, while the Shenzhen Composite Index gained 1.93% to end at 1,166.79 points.
  • The SME index for small firms added 1.82%, while the ChiNext index tracking growth enterprises plunged 1.17% in the morning session, only to rally in the afternoon session and close 0.29% higher at 942.94 points.
  • Finance stocks, including banks and securities dealers, drove the market upward, backed by sound half-year performance data from companies like Huaxia Bank, Industrial Bank, and China Unicom.
  • Founder Securities and Sealand Securities, two securities dealers, surged by the daily limit of 10%, while Huaxia Bank and Industrial Bank each gained 7.39% and 4.77%, respectively.
  • Gold stocks underperformed due to the plunge in gold futures prices in global markets.

Statistics:

  • The Shanghai Composite Index surged 2.92% to end at 2,615.26 points.
  • The Shenzhen Composite Index gained 1.93% to end at 1,166.79 points.
  • The SME index for small firms added 1.82%.
  • The ChiNext index tracking growth enterprises closed 0.29% higher at 942.94 points.
  • Combined turnover of the two bourses expanded to 190.06 billion yuan from 146.8 billion yuan in the previous trading day.
  • Net capital inflow occurred in many heavyweights, including banks and oil producers.
  • Finance stocks were the main force driving the market, pushing the main indices upward.

Sources:

  • Xinhua News Agency
  • (Xinhua via COMTEX)
  • Sun Huanjie, sunhj@xinhua.org

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