Guideline and liquidity boost lift shares

Source: Xinhua | 2017-11-21

SHANGHAI stocks closed up yesterday amid the central government’s encouragement for private funds to invest in the telecommunication sector and also on the Chinese central bank’s efforts to boost liquidity in the financial market.

The Shanghai Composite Index edged up 0.28 percent to close at 3,392.40 points.

Telecommunication firms, electronics companies and banking shares were among the biggest gainers yesterday. The telecom sector jumped 3.01 percent, according to data from financial data provider Wind Information Co.

The Ministry of Industry and Information Technology and other ministries yesterday released a guideline which encourages private funds to invest in the telecom sector amid the government’s continuing development of the sector.

Sentiment also increased after the People’s Bank of China injected 100 billion yuan (US$15.07 billion) into the financial market through reverse repurchase agreements yesterday, according to a statement published on its official website.

Guangdong Super Telecom Co Ltd surged by the daily limit of 10 percent to 55.34 yuan (US$8.34), Wuhan Yangtze Communication Industry Group Co Ltd jumped 6.02 percent to 30.46 yuan and China Merchants Bank Co Ltd added 3.91 percent to 30.53 yuan.