China’s Shanghai Composite Index headed for the longest winning streak since April 2007, led by technology and property companies, after the government signalled it was comfortable with the pace of the sharemarket rally.
Dr. Peng Telecom & Media Group and Beijing Shiji Information Technology surged at least 7 per cent. China Vanke and Poly Real Estate Group, the biggest developers, climbed at least 2 per cent as UBS recommended property shares and Fujian province lifted a ban on home purchases by foreigners. China Petroleum & Chemical Corp slid 2.6 per cent in Hong Kong after reporting its lowest annual profit since 2008.
The Shanghai Composite advanced 1.5 per cent to 3,670.47 at 1:30pm local time, extending an eight-day, 10 per cent rally. While the China Securities Regulatory Commission urged investors to consider risks in a Friday briefing, it also said recent gains reflect support for economic growth. “The CSRC’s comments display official support for the market rally and the medium and long-term trend should be upward,” said Wei Wei, an analyst at West China Securities in Shanghai.
Trading volumes in the Shanghai Composite were 82 per cent higher than 30-day average for this time of day. Combined trading values on the Shanghai and Shenzhen stock exchanges surpassed 1 trillion yuan for a fourth day on Friday, while the outstanding balance of margin debt on the Shanghai Stock Exchange rose 1.7 per cent to a record 927 billion yuan.
