Benchmark expected to rise after weathering rate cut

The Chinese mainland’s benchmark stock index is expected to touch the 3,301- point mark this week as the market has weathered short- term risks and because more funds have entered the markets, according to media reports.

Although the US Federal Reserve raised its benchmark interest rate last week, it won’t stop the upward trend of the mainland’s stock market, according to a report by Ping An Securities on Friday.

Some experts continued to recommend some blue- chip stocks related to the State- owned enterprise reform.

But the start- up stocks are nowhere near a bull market, a report from Beijing- based stock information provider hongzhoukan. com said on Saturday. Both the current tech- nology and policies can’t propel the stocks into bull market territory, the report said.

China’s real estate sector took a hit last week after major cities imposed new property market restrictions to curb speculation.

Mainland stock indexes fell on Friday, posting their worst day since December 2016.

The benchmark Shanghai Composite Index declined 0.96 percent to 3,237.45 points on Friday, cutting the week’s gain to 0.77 percent.

The Shenzhen Component Index shed 1.03 percent to 10,515.41 points on the day, but still managed to rise 0.62 percent for the week.

The blue- chip CSI 300 index slipped 1.03 percent on the day, ending nearly flat for the week.

Most sectors lost ground on Friday, dragged down by the material and banking sectors.

In particular, investors retreated from newly listed stocks, many of which slumped after surging in past weeks on speculative buying.

Still, shares in Baiyin Nonferrous closed up 1.6 percent. The stock has surpassed China Molybdenum to become the largest listed nonferrous company by market value after rocketing 574 percent since its trading debut in mid- February.