Blue-chips gain on new leadership lineup

China’s blue-chips extended gains on Wednesday to 26-month highs, underpinned by robust profits from tech firms and as the Communist Party of China (CPC) revealed its new leadership lineup.

The blue-chip CSI300 index rose 0.44 percent to 3,976.95 points, while the Shanghai Composite Index gained 0.26 percent to 3,396.90 points.

HSBC’s economist Julia Wang expects coordinated policies to reduce financial risks, more institutionalized environment policies and accelerated State-owned enterprise reforms following the key meeting. Sector performance was mixed. Gains were led by developers and healthcare stocks, while other sectors were little changed in thin trading activity.

Beijing-based BOE Technology surged 9.6 percent to a 28-month high, after the display device maker reported rocketing profits for the first nine months of this year.

Among blue-chips, which have seen their share prices far outperform the broader market, BOE’s stock nearly doubled this year as the country’s investors attach more importance to firms with solid fundamentals and reasonable valuations.

Trading was mostly calm during the key meeting, as regulators vowed to maintain market stability.

However, the meeting’s conclusions have prompted some investor concerns over the market coming under pressure as volumes pick up.

“Trading has been thin lately, and volatility has been low. There is risk of a correction, now that the meeting has ended,” said Hu Yuanzhi, fund manager at Shanghai-based assets manager Rationalstone Investment.