Stocks jump to 9-month high on sci-tech board

Source: Xinhua | 2019-03-05

The Shanghai stock index jumped 1.12 percent to close above 3,000 points yesterday with investors optimistic about an influx of capital and the planned technology innovation board.

The benchmark Shanghai Composite Index soared past the 3,000-point mark to 3,027.6 points, the first time since June 14. The smaller Shenzhen Component Index also shot up 2.4 percent, to end at 9,384 points.

The total turnover on Shanghai and Shenzhen bourses hit 1.05 trillion yuan (US$156.7 billion), compared with 664.41 billion yuan from the last trading day on Friday.

The market optimism was fueled over the MSCI capital influx and a planned new tech-savvy board, according to Essence Securities.

During the weekend, China released regulations on the sci-tech innovation board with a registration-based initial public offerings system. It reflected the government’s confidence, with insiders suggesting that the market won’t take a hit like last year.

The MSCI had earlier announced that it will quadruple the weight of China A-shares on its global indexes, from 5 percent to 20 percent, starting May, effectively meaning a US$67 billion fund inflow to the A-share market, according to UBS Securities’ estimate.

Home appliances, 5G and shares with smaller market value led the surge yesterday with the Shanghai index hitting the intraday high close to the 3,100-mark.

China is considering a national blueprint to support super high-definition content transmission and broadcasting, which boosted stocks of TV, LCD panel, broadcasting network and telecommunications, including 5G sectors.

Sichuan Chonghong Electric touched the 10 percent daily cap to end at 3.16 yuan, Qingdao Hisense Electronics also jumped 10 percent to hit 10.66 yuan.

TCL Group, which focuses on LCD panels, gained 4.86 percent to close at 3.45 yuan.

Beijing Gehua CATV Network gained 10 percent to close at 11.72 yuan, while People.cn also surged the 10 percent daily cap.