Xiongan New Area concept helps A-shares

Source:Global Times Published: 2017/4/5 13:53:39

More than 20 domestic stocks linked to the newly announced Xiongan special zone shot up by the 10 percent daily limit Wednesday morning.

Investors turned bullish on companies focused on real estate development, construction materials, infrastructure and transportation in Beijing, Tianjin and North China's Hebei Province.

Xiongan New Area, located in the triangle where Beijing, Tianjin and Hebei's capital of Shijiazhuang, meet, has the same status as the Shenzhen Special Economic Zone and the Shanghai Pudong New Area, the Xinhua News Agency reported.

On Saturday, China announced the establishment of the Xiongan New Area, which spans three counties - Xiongxian, Rongcheng and Anxin.

Shares in Shanghai-listed China Fortune Land Development Co, a Beijing-headquartered industrial park developer, leapt by 10 percent to 29.99 yuan ($4.35) shortly after the stock markets opened on Wednesday.  The share price of Tangshan Jidong Cement Co jumped by 10 percent to 15.38 yuan on the Shenzhen Stock Exchange.

Concept stocks on the Hong Kong stock exchange also received a massive boost after Saturday's announcement.

BBMG Corp, a construction materials producer based in Beijing, surged 34.67 percent, closing at HK$4.75 ($0.60) on Monday. The Shanghai and Shenzhen stock exchanges were closed Monday and Tuesday for a national holiday. When they reopened on Wednesday, BBMG's shares in Shanghai jumped 10.09 percent to 5.13 yuan.

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