The Shanghai Composite Index swiftly moved above 3,700 points after the open on Friday, the first time the benchmark reclaimed the key level since February, as the Chinese economy is showing increased resilience ahead of the forthcoming festive season.

The Shanghai index opened nearly flat before quickly rising above the 3,700 level, with securities, ultra-high voltage, and travel shares leading the rally.

The A50 index, which comprises the 50 largest constituents traded on the Shanghai and Shenzhen stock exchanges, jumped about 1.5 percent at the end of Friday morning session, underpinning the comeback.

The tech-heavy ChiNext index still swung between gains and losses on Friday morning. 

As of Thursday, daily turnover of the mainland equity market had topped 1 trillion yuan ($155.07 billion) for 37 consecutive trading days. This, in addition to the recent announcement of a new stock exchange to be set up in Beijing, came across as providing a tailwind for notably securities shares.

Scenic attractions and travel related stocks posted stellar gains during the morning session, as the Mid-Autumn and National Day holidays approach, stoking hopes of a long-awaited recovery in the COVID-19-inflicted travel sector as the country has tamped the Delta variant of the coronavirus.

Moreover, stronger-than-expected export growth in August was seen as offering a glimpse of the economic resilience despite the still raging global pandemic and breakouts of infection domestically. 

Global Times