Unicom, Chalco news lifts mainland stocks

Source:Reuters-Global Times Published: 2017/8/21 18:03:40

Chinese mainland stocks rose on Monday, buoyed by strong gains in telecoms group China Unicom after the country's securities regulator granted special dispensation to its $11.7 billion ownership reform plan.

The blue-chip CSI300 index ended up 0.44 percent at 3,740.99 points, while the Shanghai Composite Index gained 0.56 percent to 3,286.91 points.

However, market watchers were split on the prospects for further index gains, with some pointing to continued technical resistance for the Shanghai index at 3,300 points, while others said strong corporate earnings could help the market to break through.

China United Network Communications Ltd, a Shanghai-listed unit of China Unicom, surged by the daily limit of 10 percent. Its shares had been suspended since April 5.

The China Securities Regulatory Commission said Monday morning that a plan by China Unicom's Shanghai unit to tap more than a dozen major investors, including Alibaba Group, Tencent Holdings and Baidu, did not violate rules on private placements.

Materials companies also rose strongly, led by Aluminum Corp of China (Chalco), which closed 7.54 percent higher. The president of Chalco said on Friday that it had increased aluminum production in the first half of 2017 to take advantage of capacity cuts by private rivals, and would continue to raise production in the second half.

The materials sub-index has gained nearly 24 percent since the beginning of June.

Posted in: MARKETS

blog comments powered by Disqus