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SCI Back Above 2600 on PBOC Q2 Report
The Shanghai Composite Index climbed 2.26% to close at 2,633.66, while the Shenzhen Composite Index added 2.15% to end at 1,071.95 on Wednesday, July 28. Trading volumes on the Shanghai and Shenzhen Stock Exchanges were 12.9 billion and 7.86 billion, respectively.
China's economic growth is likely to slow, but the possibility of a double dip is small as fundamentals remain healthy, according to the People's Bank of China second quarter macro-economy report released July 28.
Construction companies soared, with Huaxin Cement (600801.SH), Anhui Conch Cement (0914.HK, 600585.SH) and Xishui Strong Year (600291.SH) up 10.02% 10.00% and 10.03%, respectively.
Shenzhen-based companies performed extremely strongly, notably those related to real estate development. Concrete manufacturer Shenzhen Universe (000023.SZ) gained 10.05%, property developers Shenzhen Properties & Resources Development (000011.SZ), Shenzhen Hongkai (Group) (000040.SZ), Shenzhen Fountain Corp. (000005.SZ), Shenzhen Special Economic Zone Real Estate & Properties (SPG) (000029.SZ) all reached the 10% daily price movement limit.
Major real estate companies also staged significant rallies. Gemdale (600383.SH) added 6.89%, Poly Real Estate (600048.SH) increased 4.25% and Xinjiang Guanghui Industry (600256.SH) climbed 3.02%.
Securities companies also strengthened. Huatai Securities (601688.SH) expanded 4.17%, Everbright Securities (601788.SH) moved up 3.7% and Citic Securities (600030.SH) closed 3.32% higher.
Four companies began trading on the ChiNext board on Wednesday, according to an announcement by the Shenzhen Stock Exchange. Jiangxi Huawu Brake (300095.SZ) increased 64.01%, Dalian Zhiyun Automation (300097.SZ) advanced 52.48%, YLZ Information Technology (300096.SZ) gained 47.63% and Guangdong Gosun Telecommunications (300098.SZ) gained 12.36%. The ChiNext Index increased 1.52% to 972.53 on Wednesday.
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