Economic review

Chinese shares extend strong rally

2017-05-16 18:49:00 (Beijing Time)         Xinhua

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Chinese stocks rallied strongly on Tuesday as the market regained momentum, with the benchmark Shanghai Composite Index up 0.74 percent to end the day at 3,112.96 points.

The smaller Shenzhen Component Index closed 2.04 percent higher at 10,046.66 points. Total turnover on the two bourses surged to 460.7 billion yuan (about 66.83 U.S. dollars), up from 349.6 billion yuan on the previous trading day.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, ended 2.04 percent higher to close at 1,814.94 points, the largest daily rise recorded this year.

More than 70 stocks across the two bourses surged by the daily limit of 10 percent.

Tuesday's rally was a strong rebound after intensifying regulatory measures on the financial sector weighed on stock market sentiment in past weeks.

Analysts said it was important for the Shanghai index to return to the 3,100-point level, which could be a strong boost for investor confidence.

Shares related to Xiongan New Area, a new economic zone to be built near Beijing, drove the rebound Tuesday, with 15 stocks, including Beijing Capital Co., Ltd. and SPIC Shijiazhuang Dongfang Energy Corporation, jumping by the daily limit of 10 percent.

China announced plans last month to create Xiongan New Area, which authorities described as a "major historic and strategic choice" that would be "crucial for the millennium to come," sparking investors' enthusiasm over related stocks.

Logistics shares also led the market increase. S.F.Express Co., a leading courier service provider, rose by the 10-percent daily limit to end at 55.24 yuan.

Financial shares bucked the trend by losing slightly Tuesday. The Industrial and Commercial Bank of China, the country's largest lender by market value, slid 1.96 percent to 5 yuan.