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China shares up ahead of small board trading

China shares up ahead of small board trading

Chinese shares rebounded Wednesday from their biggest one-day fall in a month and brokerage stocks rose on expectations of more business as a new small-companies board prepared to start trading.
The benchmark Shanghai Composite Index edged up 9.87 points, or 0.3 percent, to close at 3,031.33 after a 2.8 percent decline a day earlier. The Shenzhen Composite Index for China's smaller second exchange jumped 1.1 percent to 1,067.14.
The market was choppy amid uncertainty about the impact of the new Growth Enterprises Board, analysts said.
"Generally small boards won't depress share prices on main boards in the long run, but the jitters were more from the psychological level," said Cai Junyi, an analyst for Shanghai Securities.
Brokerages rose on expectations the new market will mean more business. Guoyuan Securities soared 6.5 percent to 23.79 yuan, while Sinolink Securities added 5.3 percent to 23.13 yuan.
Airline shares rose after the country's three major carriers reported a rise in third-quarter profits. China Southern Airlines Ltd., the biggest carrier by passenger numbers, rose 1.9 percent to 5.38 yuan, while Air China Ltd. added 1.6 percent to 7.88 yuan and China Eastern Airlines Corp. climbed 0.5 percent to 5.64 yuan.
Resource and metal shares rebounded on higher commodity prices in Asia.
PetroChina Ltd., Asia's biggest gas and oil producer, rose 0.2 percent to 13.39 yuan, and China Petroleum & Chemical Corp., or Sinopec, the region's biggest refiner, climbed by 0.7 percent to 11.73 yuan.
Yunan Copper Ltd. edged up 1.2 percent to 31.28 yuan, and Aluminum Corp. of China rose 0.2 percent to 14.4 yuan.
In currency markets, the yuan weakened to 6.8275 to the U.S. dollar, down from Tuesday's close of 6.8179.


Updated : 2021-05-17 04:54 GMT+08:00