China Back to Work-China Stock Market Bang
About: (PTR, SNP, CSI)
Stock markets in Shanghai and Shenzhen soared today as the country’s National Day holiday came to a resounding end.
Chinese equities rose 4.76 percent on the first day of trading after the eight-day National Day holiday.
The benchmark Shanghai Composite Index jumped by 132.29 points, or 4.7 percent, to end at 2,911.72, a very big recovery from the lows of more than a month ago. The Shenzhen Component Index gained 594.39 points, or 5.30 percent to close at 11,801.23.
Volume was unusually high, reflecting investor optimism about the Chinese economy. Combined turnover rose from 108.18 billion yuan on the previous trading day to 145.52 billion yuan ($21.31 billion).
It was the biggest daily gain in five weeks, largely supported by a rise in metal producers’ shares after a jump in commodity prices.
Some of the action in Shanghai reflected gains achieved on western markets over the long holiday break. PetroChina (PTR) rose 3.70 percent to 13.17 yuan. China Petroleum & Chemical Corp. (SNP) was up 4.34 percent to 11.79 yuan. Rising oil prices also helped the market capital of these China Stock Digest favorites to rise.
“Positive economic figures and the good performance of surrounding markets provided external conditions for the hike in domestic markets, and the index will remain stable despite some small fluctuations in the fourth quarter,” Wang Shuxu, an analyst with Guohai Securities told Shanghai Daily after the market’s surge.
Hong Kong’s Hang Seng Index has also been on the rise for four consecutive days.
The rise is also seen as a sign of confidence that China will benefit from a global economic recovery, now believed to be underway.
