China stocks rise for 6th session as start-ups shine
Reuters|
Feb 26, 2018, 03.31 PM IST
SHANGHAI: China stocks extended gains on Monday, with major indexes climbing for a sixth session in a row, led by start-ups which saw their best day in seven months on expectations they will benefit from a proposal to delay reforms for initial public offerings (IPOs).
China's top securities regulator Liu Shiyu proposed to delay a deadline for the government to authorise a registration-based initial public offering mechanism until Feb. 29, 2020, the official Xinhua News Agency reported on Friday.
Market participants were also keeping a close watch on the impact of certain amendments in the wording of China's constitution.
China's ruling Communist Party on Sunday set the stage for President Xi Jinping to stay in office indefinitely, with a proposal to remove a constitutional clause limiting presidential service to just two terms in office.
"The possible extension of Xi's tenure could help ensure political stability and would be good for promoting deeper and wider economic reforms," said Yang Hongxun, Shanghai-based analyst at investment consultancy Shandong Shenguang.
Yang's view was echoed by brokerage Everbright Sun Hung Kai, which said a more powerful Xi could make policy implementation more efficient, for example, at local government and state-owned enterprise (SOEs) levels.
At the close, the Shanghai Composite index was up 1.2 per cent at 3,329.57.
The blue-chip CSI300 index was also up 1.2 per cent, with its financial sector sub-index higher by 0.41 per cent, the consumer staples sector down 0.14 per cent, the real estate index down 1.6 per cent and healthcare sub-index up 1.55 per cent.
The smaller Shenzhen index ended up 2.25 per cent and the start-up board ChiNext Composite index was higher by 3.61 per cent.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.7 per cent, while Japan's Nikkei index closed up 1.19 per cent.
At 07:03 GMT, the yuan was quoted at 6.314 per U.S. dollar, 0.38 per cent firmer than the previous close of 6.3379.
The largest per centage gainers on the main Shanghai Composite index were Zhongzai Resources and Environment Co Ltd up 10.04 per cent, followed by Shanghai Zhongyida Co Ltd gaining 10.02 per cent and Pengxin International Mining Co Ltd, up by 10.01 per cent.
The largest per centage losers on the Shanghai index were Aluminum Corp of China Ltd down 10.01 per cent, followed by Poly Real Estate Group Co Ltd losing 3.52 per cent and Dasheng Times Cultural Investment Co Ltd , down by 2.23 per cent.
So far this year, the Shanghai stock index has fallen 0.55 per cent; the CSI300 is up 2.2 per cent this year, while China's H-share index listed in Hong Kong is up 8.8 per cent. Shanghai stocks have declined 5.51 per cent this month.
About 18.86 billion shares were traded on the Shanghai exchange, roughly 89.3 per cent of the market's 30-day moving average of 21.12 billion shares a day. The volume in the previous trading session was 14.58 billion.
As of 07:04 GMT, China's A-shares were trading at a premium of 27.96 per cent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.
China's top securities regulator Liu Shiyu proposed to delay a deadline for the government to authorise a registration-based initial public offering mechanism until Feb. 29, 2020, the official Xinhua News Agency reported on Friday.
Market participants were also keeping a close watch on the impact of certain amendments in the wording of China's constitution.
China's ruling Communist Party on Sunday set the stage for President Xi Jinping to stay in office indefinitely, with a proposal to remove a constitutional clause limiting presidential service to just two terms in office.
"The possible extension of Xi's tenure could help ensure political stability and would be good for promoting deeper and wider economic reforms," said Yang Hongxun, Shanghai-based analyst at investment consultancy Shandong Shenguang.
Yang's view was echoed by brokerage Everbright Sun Hung Kai, which said a more powerful Xi could make policy implementation more efficient, for example, at local government and state-owned enterprise (SOEs) levels.
At the close, the Shanghai Composite index was up 1.2 per cent at 3,329.57.
The blue-chip CSI300 index was also up 1.2 per cent, with its financial sector sub-index higher by 0.41 per cent, the consumer staples sector down 0.14 per cent, the real estate index down 1.6 per cent and healthcare sub-index up 1.55 per cent.
The smaller Shenzhen index ended up 2.25 per cent and the start-up board ChiNext Composite index was higher by 3.61 per cent.
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.7 per cent, while Japan's Nikkei index closed up 1.19 per cent.
At 07:03 GMT, the yuan was quoted at 6.314 per U.S. dollar, 0.38 per cent firmer than the previous close of 6.3379.
The largest per centage gainers on the main Shanghai Composite index were Zhongzai Resources and Environment Co Ltd up 10.04 per cent, followed by Shanghai Zhongyida Co Ltd gaining 10.02 per cent and Pengxin International Mining Co Ltd, up by 10.01 per cent.
The largest per centage losers on the Shanghai index were Aluminum Corp of China Ltd down 10.01 per cent, followed by Poly Real Estate Group Co Ltd losing 3.52 per cent and Dasheng Times Cultural Investment Co Ltd , down by 2.23 per cent.
So far this year, the Shanghai stock index has fallen 0.55 per cent; the CSI300 is up 2.2 per cent this year, while China's H-share index listed in Hong Kong is up 8.8 per cent. Shanghai stocks have declined 5.51 per cent this month.
About 18.86 billion shares were traded on the Shanghai exchange, roughly 89.3 per cent of the market's 30-day moving average of 21.12 billion shares a day. The volume in the previous trading session was 14.58 billion.
As of 07:04 GMT, China's A-shares were trading at a premium of 27.96 per cent over the Hong Kong-listed H-shares.
The Shanghai stock index is below its 50-day moving average and above its 200-day moving average.
