China stocks record best day in seven sessions boosted by financials and pharmaceuticals, as investors bargain hunt
- A return of foreign money lifted investors’ sentiment
- Chinese brokerages advance on merger speculation
China stocks gained the most in more than a week on Wednesday, while Hong Kong market also rose, as investors looking for bargains piled into financials and pharmaceuticals after a recent pullback.
The Shanghai Composite Index advanced 2.1 per cent to 3,294.55, recording its best daily performance in seven trading sessions. The benchmark has been consolidating amid China’s rising tensions with the US for the past two weeks, after a rapid run-up sent it to a two-year high on July 13.
The CSI 300 Index of large caps listed in Shanghai and Shenzhen added 2.4 per cent. And the STAR 50 index, the official gauge for companies listed on the technology-focused Star Market board in Shanghai, jumped 5.5 per cent.
The Hang Seng Index also gained 0.5 per cent to 24,883.14. The Hang Seng Tech Index, newly launched to track the 30 largest technology firms listed in Hong Kong, advanced 1 per cent.
“The rally today among securities brokerages, which is a key signal for a bull market, shows investors’ confidence in the market has recovered after the recent slump,” said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management.
Investors’ sentiment also received a boost from an influx of foreign capital, as the net inflow into China’s domestic markets through the Stock Connect programme in Hong Kong reached 10 billion yuan (US$1 billion), its highest level since July 6, snapping a four-session streak of net outflow.
