SHANGHAI’S key stock index yesterday rose for the third straight day, led by new-energy firms on speculation that the government’s massive investment in the sector will boost earnings.
The benchmark Shanghai Composite Index increased 0.26 percent, or 6.66 points, to close at 2,535.39. Turnover shrank to 105.7 billion yuan (US$15.6 billion) from 116.4 billion yuan on Tuesday.
New-energy stocks advanced after the central government released a plan yesterday to invest 5 trillion yuan to develop clean energy in the next decade. The blueprint will focus on reducing reliance on fossil energy and carbon emissions, the National Energy Administration said.
Guangdong Baolihua New Energy Stock Co surged 10 percent to 5.70 yuan. SUFA Technology Industry Co, a leading valve provider for nuclear power plants, climbed 5.6 percent to 20.57 yuan. Guizhou Changzheng Electric Co gained 1.3 percent to 10.39 yuan.
“New energy and other emerging sectors are expected to gain substantial support from the government amid its push to restructure the economy,” said Wang Fan, an analyst from Donghai Securities Co. “These companies may replace the property industry to provide new momentum that will shore up the stock market.”
Airliners also gained after the Civil Aviation Administration of China said domestic carriers carried 21.8 million passengers in June, up 23 percent from a year earlier.
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Shanghai shares rise for a third day in row
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