Markets rise despite GDP slowdown

By Park Gayoung Source:Global Times Published: 2014-4-16 22:28:01

Stock markets in the Chinese mainland recovered slightly on Wednesday after the previous day's fall, despite first-quarter GDP growth data indicating a slowdown in the country's economy.

The benchmark Shanghai Composite Index rose by 3.52 points or 0.17 percent to 2,105.12 points on Wednesday. The Shenzhen Component Index inched up by 18.76 points or 0.25 percent to close at 7,468.46 points.

Combined turnover on the two bourses on Wednesday was 159.15 billion yuan ($25.57 billion), down from Tuesday's 199.03 billion yuan.

Wednesday's gain came after the release of data by the National Bureau of Statistics showing first-quarter GDP growth of 7.4 percent year-on-year, down from 7.7 percent in the previous quarter but still within market expectations.

Stocks linked to Xinjiang Autonomous Region, lottery firms and cement companies gained on Wednesday.

Companies based in Xin­jiang have risen since a series of economic policies were announced last week. They fell back slightly on Tuesday, but rose again on Wednesday.

Xinjiang Urban Construction (Group) Co and China West Construction Co jumped by the daily limit of 10 percent.

But shares tied to Tibet Autonomous Region fell back Wednesday, after strong gains in the previous trading session. Tibet Mineral Development Co slid 3.04 percent to 11.48 yuan and Tibet Tourism Co declined by 2.77 percent to 9.46 yuan. 

Brokerages also gained after the Shanghai Securities News reported Wednesday that the China Securities Regulatory Commission had ordered underwriters to update application materials for companies waiting to get listed, raising speculation that the commission might restart IPOs, which have been paused since February 19.

Founder Securities Co rose by 2.96 percent to 5.92 yuan.

But the IPO news hit ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, which declined by 10.59 points or 0.77 percent to close at 1,359.30 points on Wednesday.



Posted in: Markets

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