Chinese shares end higher Monday as Unicom surges

Source:Xinhua Published: 2017/8/21 16:38:52

Chinese shares closed higher on Monday, led by the strong performance of recently listed companies, while the announcement of ownership reform plans by China Unicom also boosted market sentiment.

The benchmark Shanghai Composite Index went up 0.56 percent to 3,286.91 points while the Shenzhen Component Index closed 0.71 percent higher at 10,689.77 points.

Trading remained subdued with combined turnover on the two bourses reaching 455.6 billion yuan (68.3 billion US dollars).

Recently listed companies were among the biggest winners Monday, with more than 20 such shares surging by the daily upper limit.

BGI Genomics, a gene sequencing firm that was listed on the Shenzhen Stock Exchange in mid-July, saw its shares up 10 percent to reach 131.63 yuan. The company's initial offering price was 13.64 yuan.

Investors were also bullish on the promise of the country's ongoing state-owned enterprise reform, with related stocks outperforming the benchmark.

China Unicom, the country's second-largest telecom company, saw its shares surge by the daily limit of 10 percent on the Shanghai Stock Exchange Monday after it confirmed plans to bring in strategic investors including Alibaba and Tencent.

The rise came after a trading suspension of more than four months, during which the company contemplated and advanced the so-called "mixed-ownership reform," which includes private placement of its shares.

During Monday morning trading, companies related to the mixed-ownership reform saw their shares surge. Suning Commerce Group, one of China Unicom's investors, jumped more than 4 percent at one point before trending down slightly.

Guangdong Eastone Century Technology Company, another firm related to the reform, saw its shares surge by the daily limit of 10 percent.

The ChiNext Index, which tracks China's NASDAQ-style enterprises, gained 0.41 percent to close at 1,829.22.

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