Shanghai stocks post seventh week of gains

Shanghai stocks ended the last week higher, marking their seventh consecutive weekly gains.

Over the past week, the benchmark Shanghai Composite Index gained 0.3 percent, supported by the continued strength in resources firms.

The materials sector outperformed most sectors, with a gain of 5.5 percent last week, as the earnings of material firms benefited from the building frenzy amid China’s pursuit of supplyside reform.

“The strong rally in cyclicals, including steelmakers and non- ferrous metals producers, is not over yet as valuations for those firms remain low,” analysts with Wuhan- headquartered Changjiang Securities said in a Reuters report.

However, last Friday, major stocks in the Chinese mainland fell, with the Shanghai index ending down 0.33 percent at 3,262.08 points.

The smaller Shenzhen Component Index fell 0.72 percent to 10,361.23 points. The blue- chip CSI300 index fell 0.54 percent to 3,707.58 points, notching a weekly loss of 0.4 percent.

Tech- heavy start- up board ChiNext remained sluggish Friday, losing 0.78 percent to 1,719.62 points as investors turned their backs on leading tech firms that have posted slumping profits.

Market investors’ sentiment was hit after news circulated last Wednesday that the US may open a probe into China’s intellectual property regime.

They are also awaiting economy data due in the coming weeks that many expect will point to a steady growth in the world’s second- largest economy in July.

Many securities analysts have predicted that the Shanghai index is facing pressure to pass the 3,300- level in the near future.

Last week, 46 new small and medium- sized enterprises debuted on China’s National Equities Exchange and Quotation, also known as the “new third board,” bringing the total amounts on the board to 11,313, official data showed Saturday. Analysts said that this may put some pressure on the liquidity on the main board.

Turnover on the new third board hit 3.67 billion yuan ($ 547 million) over the past week, up 5.17 percent from the previous week.