Stocks

Chinese stocks rally for 6th straight day

Reuters Shanghai | Updated on January 24, 2018 Published on March 18, 2015

Chinese stocks rallied for the sixth straight session on Wednesday, powered by cyclical sectors such as steel, highways and property, as weak economic data raised investors’ hopes that the government will announce fresh stimulus.

Both major indexes reached their highest level in nearly seven years, while the trading volume hit fresh two-month highs.

Data early in the day showed China’s average new home prices fell at the fastest pace on record in February, posing a further risk to the government’s new economic growth target of around 7 per cent for this year.

But real estate stocks jumped, with the Bank of Communications expecting the government will take measures to bolster the property market, including lower taxes and looser requirements for mortgage lending.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.4 per cent to 3,846.06, while the Shanghai Composite Index gained 2.1 per cent to 3,577.30 points.

Among the most active stocks in Shanghai were Bank of China, up 2.9 per cent at 4.33 yuan; and Agricultural Bank of China, up 3.2 per cent at 3.51 yuan.

In Shenzhen, BOE Technology, up 9.9 per cent at 3.89 yuan; TCL Corp, up 10.1 per cent at 5.79 yuan; and Suning Appliance, up 7.8 per cent at 12.81 yuan, were among the most actively traded.

Shares in China Everbright Bank Co Ltd jumped 9.3 per cent in Shanghai after the lender said it is mulling possible spin-off of wealth management arm.

Published on March 18, 2015
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