Mainland stocks slightly rise in a profit-taking mood

Source:Reuters-Global Times Published: 2017/8/22 17:08:40

Chinese mainland stocks rose on Tuesday thanks to strong support from China Unicom's Shanghai-listed unit and financial firms, but consumer and technology companies lost ground as investors took profits on recent gains.

The CSI300 index rose 0.30 percent to 3,752.30 points, while the Shanghai Composite Index gained 0.10 percent to 3,290.23 points.

However, analysts said profit-taking may continue to hold the indexes back in the near term.

"From a sector perspective, the Chinese mainland investors have recently been unloading shares that had relatively larger gains in July... this indicates that the market is overall still in a profit-taking mood," China International Capital Corporation analysts said in a research note.

Shanghai-listed China United Network Communications Ltd surged the daily limit of 10 percent for a second consecutive day.

The gains follow a statement from the China Securities Regulatory Commission on Sunday that it would treat China Unicom's $11.7 billion ownership reform plan "as an exceptional case," granting it approval.

Ping An Insurance Group Co of China, which closed 4.09 percent higher, led gains among financial firms.

But distilleries pulled the consumer staples sub-index down as investors turned to profit-taking after recent record highs.

Luzhou Laojiao Co dropped 1.16 percent, Wuliangye Yibin Co lost 2.58 percent and Kweichow Moutai Co closed down 0.51 percent.

Posted in: MARKETS

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