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China shares hit fresh record, close higher on metals, coal miners

China shares hit fresh record, close higher on metals, coal miners

Chinese stocks saw their seventh straight record close Tuesday, as gains in metal companies and coal miners outweighed losses for big banks.
The benchmark Shanghai Composite Index gained 0.9 percent, or 44.57 points, to 5,194.69 in volatile trading. The Shanghai benchmark briefly topped 5,200 before falling back late in the session. The Shenzhen Composite Index rose 0.1 percent to 1,435.46.
Chalco, China's biggest alumina and aluminum producer, surged by the 10 percent daily limit, to 55.68 yuan.
Zhang Yuheng, an analyst at CSC International Holdings, attributed the surge to speculation that Chalco's parent company will inject copper assets as well as alumina and aluminum assets into the listed firm to diversify its operations in the future.
Zhongjin Gold also rose by the 10 percent daily limit to 100.43 yuan after the company said it plans to buy a gold mine from its parent through a private share placement.
Coal miners were among the day's big gainers on expectations for higher coal prices after the Ministry of Land and Resources forecast tighter supplies.
Yanzhou Coal Mining rose 2.6 percent to 19.88 yuan, Shanxi Coking 5.8 percent to 21.29 yuan, and Shanxi Guoyang New Energy 3.3 percent to 52.69 yuan.
Banks fell as investors sold to lock in recent gains.
Bank of China fell 1.8 percent to 6.09 yuan, ICBC dropped 2.4 percent to 6.89 yuan, and China Merchants Bank slipped 1.6 percent to 37.65 yuan.
"Banks have been overvalued after recent sharp gains and the corrections in the sector will increase volatility in the overall market," said Qian Qimin, an analyst at Shenyin Wanguo Securities.
In currency dealings, the Chinese yuan rose to its highest level ever against the U.S. dollar.
The dollar was at 7.5550 around 0730 GMT on the over-the-counter market, down from Monday's close of 7.5604.


Updated : 2021-08-06 09:10 GMT+08:00