Shen­zhen-based stocks get boost from new re­form plan for pi­o­neer­ing city

Global Times US Edition - - BIZUPDATE - By Chu Daye

Shares of com­pa­nies based in Shen­zhen, a pi­o­neer­ing city in South China’s Guang­dong Prov­ince, soared af­ter the central govern­ment an­nounced on Sun­day that it would use the first-tier city as a pi­lot demon­stra­tion area with Chi­nese char­ac­ter­is­tics.

The an­nounce­ment led to gains in the Chi­nese stock mar­ket, which has been weak­ened re­cently by the on­go­ing trade war with the US.

The central govern­ment’s plan was seen by ob­servers as a move to up­grade the city and en­able it to be­come one of the most ad­vanced in the world.

In to­tal, 66 Shen­zhen-based com­pa­nies listed in the Chi­nese main­land achieved an av­er­age gain of 5.6 per­cent, while the bench­mark Shang­hai In­dex climbed 2.1 per­cent to close at 2,883.1 points.

Shares of Shen­zhen-based com­pa­nies in the real es­tate, bro­ker­age, telecom­mu­ni­ca­tions and new-en­ergy in­dus­tries posted solid gains, while state-owned com­pa­nies based in the city led the rally.

Util­ity Shen­zhen Gas Corp, in­fra­struc­ture spe­cial­ist Shen­zhen Air­port Co, and port op­er­a­tor Shen­zhen Yan Tian Port Hold­ings Co soared by the10 per­cent daily limit shortly af­ter trad­ing be­gan.

Shares of bro­ker­age firm Gu­osen Se­cu­ri­ties Co and First Cap­i­tal Se­cu­ri­ties Co reached the 10 per­cent thresh­old dur­ing af­ter­noon trad­ing.

An em­ployee at a Shen­zhen­based fund said on Monday that many peo­ple around him bought shares that reached the daily up­ward limit on Monday.

“Peo­ple may read the central govern­ment pol­icy doc­u­ment as there be­ing fewer con­straints from the top, and Shen­zhen is to sub­sti­tute some of the func­tions of the city across the river,” the per­son said on con­di­tion of anonymity as he is not au­tho­rized to speak to the me­dia, re­fer­ring to Hong Kong.

Four decades ago, when China be­gan its re­form and open­ing-up move­ment, Shen­zhen was a fish­ing vil­lage near Hong Kong. It is now home to a large num­ber of glob­ally known Chi­nese com­pa­nies.

Shares of telecom­mu­ni­ca­tions gi­ant ZTE Corp, which was caught in the trade war, saw its shares rise 6.32 per­cent on Monday.

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