ChiNext rises to about one- year high Thursday

China’s two markets in Shenzhen and Shanghai both edged up on Thursday, with the biggest rally taking place on the tech- heavy ChiNext board, which saw the largest increase in about one year.

The benchmark Shanghai Composite Index rose 0.06 percent to close at 3,249.78 points, while the Shenzhen Component Index finished the day 0.95 percent higher at 10,395.19 points.

The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen increased by 0.18 percent to 3,712.19 points.

The ChiNext Index, which tracks the country’s NASDAQ- style board for growth enterprises, increased by 3.62 percent to 1,742.19 points, the biggest single- day rise in about one year.

Up to 27 stocks surged to their daily trading limit, most of which were ChiNext stocks.

Mainland share rises are a result of data showing a pickup in profit growth for industrial firms, according to Reuters on Thursday.

China’s major industrial firms saw their profits surge by 22 percent year- on- year in the first six months of this year, data from the National Bureau of Statistics showed on Thursday.

Analysts from the Founder Securities noted that shares related to the theme of “State- owned enterprises reforms” will lead the rally of mainland stocks and will be the new “windy spot” in the second half of this year.

Analysts from the China International Capital Corporation Limited noted that small- value stocks might still be under pressure as government efforts continue to strengthen financial supervision.