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Index gains 1.23 percent amid startup momentum

    Chinese stocks remained strong yesterday as startups showed upward momentum with investors expecting small-cap shares to benefit from a proposal to delay reforms on initial public offerings.

    The benchmark Shanghai Composite Index advanced 1.23 percent to 3,329.57 points, with a turnover of 213.3 billion yuan (US$33.8 billion).

    Financial shares and brokerages pushed up the index. GF Securities advanced 2.41 percent to 16.99 yuan and Sinolink Securities rose 2.89 percent.

    China Securities Regulatory Commission chairman Liu Shiyu last week submitted a proposal to the Standing Committee of the National People’s Congress to allow the State Council two more years to adjust the stock listing system from the approval-based mode to registration-based, seeking time until February-end 2020.

    “The delay in the IPO registration scheme doesn’t mean a shift in IPO reform direction and it would eventually optimize the IPO mechanism to become more market-oriented and to include more companies into the equity market,” Huatai Securities wrote in a research note yesterday.

    Metal producers were also among the gainers, with China Molybdenum Co jumping 7.36 percent to 8.61 yuan.

    Property shares had mixed results after home price inflation moderated in January. The number of cities with a month-on-month moderation in prices rose to 13 in January from 7 in December, while the number with flat or higher prices fell.

    China Vanke Co lost 1.56 percent to 34.18 yuan and Gemdale Corp retreated 2.07 percent to 12.76 yuan. Shimao Corp edged up 0.75 percent to 5.34 yuan. Shanghai AJ Group advanced 1.11 percent to 12.75 yuan.