China shares rally on firm policy support
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.