Editorial Summary

The Shanghai Composite Index rose 0.52 percent to close at 5,494.7 on Friday, while the Shenzhen Composite Index fell 0.14 percent to close at 1,554. Trading volume on the Shanghai and Shenzhen Stock Exchanges reached RMB155.9 billion and RMB72.7 billion, respectively.

Bank stocks climbed on the Shanghai Stock Exchange on Friday, after the State Council gave approval to commercial banks to invest in insurance companies, reports China's Caijing Magazine. Shares of Hua Xia Bank (600015.SH) and Shanghai Pudong Development Bank (600000.SH) increased 10.02 percent and 8.13 percent to close at RMB22.96 and RMB61.59, respectively. According to the Caijing report, the State Council plans to launch pilot programs at three to four banks, but a ceiling for the amount of shares available for banks to purchase has not been set yet. The approved request was jointly made by the China Banking Regulatory Commission (CBRC) and China Insurance Regulatory Commission (CIRC).

Shares of banks including Industrial Bank (601166.SH), China Minsheng Banking Corporation (600016.SH), China Merchants Bank (600036.SH), Bank of Communications (601328.SH) and Bank of China (601988.SH) all rose on Friday.