China shares rally on firm pol­icy sup­port

Global Times US Edition - - BIZMARKETS -

China shares jumped on Thurs­day af­ter Bei­jing re­port­edly de­liv­ered a writ­ten re­sponse to US trade de­mands, rais­ing hopes for new ne­go­ti­a­tions be­tween the coun­tries, and as fi­nan­cial and se­cu­ri­ties com­pa­nies ben­e­fited from pol­icy sup­port for mar­kets.

The bench­mark Shang­hai Com­pos­ite In­dex was up 1.36 per­cent to close at 2,668.17 points on Thurs­day while the Shen­zhen Com­po­nent In­dex closed 1.18 per­cent higher at 8,002.1 points.

The ChiNext In­dex, China’s NAS­DAQ-style board of growth en­ter­prises, was up 1.41 per­cent to close at 1,405.25 points Thurs­day.

But a Reuters anal­y­sis of the earn­ings of 1,950 firms listed in Shang­hai and Shen­zhen showed that they man­aged a com­bined net profit rise of just 3.9 per­cent in the third quar­ter, com­pared with jumps of 20-55 per­cent seen in each quar­ter for the past two years in a warn­ing sign for eco­nomic slow­down.

Shares in Hainan-based firms ral­lied af­ter Bei­jing ap­proved pro­pos­als to boost the lo­cal econ­omy.

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