China’s onshore stocks rise to one-month high as increasing turnover and policy support for chip sector boost risk appetite
- Healthcare and telecoms stock gauges gain the most among the 10 industry groups on the CSI 300 Index
- Combined daily turnover on the Shanghai and Shenzhen exchanges has exceeded 1 trillion yuan (US$145 billion) this month
China’s stocks rose to a one-month high as optimism in the onshore market continues to grow amid increasing turnover and the state’s repeated pledge to support the chip-making industry.
The Shanghai Composite Index added 0.5 per cent to 3,327.65, the highest close since March 3. The benchmark rose 1.7 per cent this week, its fourth straight weekly gain. The Shenzhen Composite Index advanced 0.9 per cent.
Hong Kong’s financial market is closed up to Tuesday for the Easter holiday.
Healthcare and telecoms stock gauges rose the most among the 10 industry groups on the CSI 300 Index, gaining at least 2.7 per cent. Jiangsu Hengrui Pharmaceutical added 5.5 per cent to 45.15 yuan and Wuxi AppTech gained 6.6 per cent to 83.82 yuan. Telecoms equipment maker ZTE rallied by 10 per cent to 37 yuan following a report that cited president Xu Ziyang that the company would launch a GPU server that supports ChatGPT. China Telecom rose 0.9 per cent to 6.98 yuan.
“Digital China is one of the main themes in the market and that’s not going to change any time soon,” said Zhao Wei, an analyst at Founder Securities. “Stocks will trend up as there is growing optimism that China’s economy will enter a new cycle that will rely on tech as the new driver.”