|
Chinese shares continued their upward trend for the fourth consecutive day and rose 1.99 percent Wednesday, driving the benchmark Shanghai Composite Index to a new 10-month high since August last year.
The Shanghai Composite Index gained 1.99 percent, or 54.29 points, to close at 2,778.59 points Wednesday.
The Shenzhen Component Index went up 2.17 percent, or 227.98 points, to 10,712.31.
Gains outnumbered losses by 539 to 291 in Shanghai and 485 to 254 in Shenzhen.
Combined turnover slightly shrank to 238.79 billion yuan (34.96billion U.S. dollars) Wednesday from 240.42 billion yuan on the previous trading day.
Gold shares continued to gain momentum on the increasing gold price boosted by a rally in oil prices, Zhang Yunpeng, an analyst with Beijing-based Huarong Securities, told Xinhua Wednesday.
Zhongjin Gold surged by the daily limit of 10 percent to 93.04 yuan, while Shandong Gold Mining soared 9.62 percent to 54.79 yuan.
Property shares rose across the board, as investor confidence was heartened by the growing home sales nationwide and the government's latest move to lower developers' investment threshold, Zhang said.
China's State Council (Cabinet) announced on May 27 that the minimum capital requirements for a new commercial property or an affordable housing project had been lowered from 35 percent of the total project cost to 20 percent, a move to ease developers' capital strain and stabilize housing prices.
The sector continued to rise for the third consecutive day. China Vanke, the largest property developer by market value, surged 6.07 percent to 10.84 yuan Wednesday, while Poly Real Estate rocketed 8.99 percent to 25.34 yuan.
Financial large-caps boosted the index up. The Industrial and Commercial Bank of China (ICBC), the country's largest lender, advanced 4.22 percent to 4.69 yuan, while China Construction Bank (CCB) added 3.63 percent to 4.85 yuan.
"Financial heavyweights under-performed the index in the past five months when the Shanghai Composite Index has gained more than 50 percent since the beginning of this year as of Wednesday, and the bullish market trend regained the investor confidence," he said.
The A-shares of ICBC and CCB have gained 30.6 percent and 25.3 percent respectively from the beginning of this year as of Wednesday. |
