China stocks extend gains, start-ups shine
Reuters|
Mar 09, 2018, 01.28 PM IST
SHANGHAI: China stocks extended gains on Friday to end the week higher, led by start-ups as investors continued to place bets on tech firms seen as the drivers of the country's "new economy", and as investors pondered the impact of US tariffs.
For the day, the Shanghai Composite index was up 0.6 per cent at 3,307.17, while the blue-chip CSI300 index was up 0.78 per cent at 4,108.87.
For the week, SSEC gained 1.6 per cent, while CSI300 advanced 2.3 per cent.
China's commerce ministry said on Friday that it "resolutely opposed" a move by US President Donald Trump to impose tariffs on steel and aluminium imports and called for the United States to withdraw the measures as quickly as possible.
An index tracking major materials firms, including steel and aluminium makers, edged down 0.3 per cent, but losses were narrowed in the late session, as traders and analysts saw a limited impact from the tariffs.
Elsewhere, there was muted reaction to data showing China's producer price inflation eased to the slowest pace in 15 months in February, as the cost of raw materials and other inputs rose at a milder pace.
Investors' interest in start-up firms has already surged, as Beijing moves to attract tech giants back to its stock market at home.
The start-up board ChiNext Composite index jumped 3.53 per cent on Friday to a near four-month high. The index has gained 4.8 per cent this week, in its fourth straight weekly gain.
China may allow its offshore-listed tech giants to sell a form of shares on the mainland, in a move that would pit Shanghai and Shenzhen against Hong Kong in the battle to host the country's tech giants, Reuters reported on Monday.
Beijing's efforts to attract overseas-listed tech giants have revived long-dormant investor interest in technology shares, chipping away at the allure of blue-chips along the way.
"The mention in government work report of fostering new drivers for economic growth and quickening the development of emerging technologies and industries, has drawn a lot of attention in the capital market," Li Lifeng, analyst with Sinolink Securities, wrote in a note.
From the perspective of Beijing's policies, this year investors could focus on the so-called "blue-chips" in the tech sector, Li added, referring to leading start-up firms with reasonable valuations and solid results.
The largest per centage gainers in the main Shanghai Composite index were Beijing Dynamic Power Co Ltd, up 10.09 per cent, followed by Xinjiang Bai Hua Cun Co Ltd gaining 10.05 per cent, and Shanghai U9 Game Co Ltd up by 10.01 per cent.
The largest per centage losers in the Shanghai index were Guangdong Hec Technology Holding Co Ltd, down 6.62 per cent, followed by Top Energy Company Ltd Shanxi losing 3.57 per cent and Chongqing Iron & Steel Co Ltd down by 3.49 per cent.
As of 07:04 GMT, China's A-shares were trading at a premium of 28.04 per cent over the Hong Kong-listed H-shares.
For the day, the Shanghai Composite index was up 0.6 per cent at 3,307.17, while the blue-chip CSI300 index was up 0.78 per cent at 4,108.87.
For the week, SSEC gained 1.6 per cent, while CSI300 advanced 2.3 per cent.
China's commerce ministry said on Friday that it "resolutely opposed" a move by US President Donald Trump to impose tariffs on steel and aluminium imports and called for the United States to withdraw the measures as quickly as possible.
An index tracking major materials firms, including steel and aluminium makers, edged down 0.3 per cent, but losses were narrowed in the late session, as traders and analysts saw a limited impact from the tariffs.
Elsewhere, there was muted reaction to data showing China's producer price inflation eased to the slowest pace in 15 months in February, as the cost of raw materials and other inputs rose at a milder pace.
Investors' interest in start-up firms has already surged, as Beijing moves to attract tech giants back to its stock market at home.
The start-up board ChiNext Composite index jumped 3.53 per cent on Friday to a near four-month high. The index has gained 4.8 per cent this week, in its fourth straight weekly gain.
China may allow its offshore-listed tech giants to sell a form of shares on the mainland, in a move that would pit Shanghai and Shenzhen against Hong Kong in the battle to host the country's tech giants, Reuters reported on Monday.
Beijing's efforts to attract overseas-listed tech giants have revived long-dormant investor interest in technology shares, chipping away at the allure of blue-chips along the way.
"The mention in government work report of fostering new drivers for economic growth and quickening the development of emerging technologies and industries, has drawn a lot of attention in the capital market," Li Lifeng, analyst with Sinolink Securities, wrote in a note.
From the perspective of Beijing's policies, this year investors could focus on the so-called "blue-chips" in the tech sector, Li added, referring to leading start-up firms with reasonable valuations and solid results.
The largest per centage gainers in the main Shanghai Composite index were Beijing Dynamic Power Co Ltd, up 10.09 per cent, followed by Xinjiang Bai Hua Cun Co Ltd gaining 10.05 per cent, and Shanghai U9 Game Co Ltd up by 10.01 per cent.
The largest per centage losers in the Shanghai index were Guangdong Hec Technology Holding Co Ltd, down 6.62 per cent, followed by Top Energy Company Ltd Shanxi losing 3.57 per cent and Chongqing Iron & Steel Co Ltd down by 3.49 per cent.
As of 07:04 GMT, China's A-shares were trading at a premium of 28.04 per cent over the Hong Kong-listed H-shares.
