Shanghai shares rose slightly yesterday, led by stocks related to the newly approved free trade zone in Shanghai, to end August trading with a gain.
The benchmark Shanghai Composite Index edged up 0.06 percent to 2,098.38 points yesterday. The index rose 5.25 percent in August, with the outlook for September turning rosy following the stable economic situation in July and August.
“The trend in September shouldn’t be disappointing,” said Wei Yingjie, analyst at Orient Securities, adding that three factors normally decide the performance of the A-share market: economic data, the US Federal Reserve’s bond buying, and industrial reforms.
A total of 51 stocks on the Shanghai and Shenzhen exchanges jumped by the daily limit of 10 percent, mainly led by shares related to the pilot Shanghai FTZ.
“The market is speculating in shares related to the free trade zone,” said Shenyin and Wanguo Securities Co. “Moreover, investors are eying opportunities in Tianjin and Chongqing which have also submitted plans for their own free trade zones.”
Shanghai International Port (Group) Co jumped 10 percent to 4.52 yuan (74 US cents), rising for a sixth straight trading day. Shanghai Material Trading Co was also up 10 percent to 14.51 yuan.
Shanghai Waigaoqiao Free Trade Zone Development Co, which announced that it would raise up to 2.7 billion yuan through a private offering, also soared 10 percent to 14.85 yuan after resuming trading from a suspension since July 22.
The company is the operator of two of the four bonded zones that have been included in the Shanghai FTZ.