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1st LD-Writethru: Chinese stocks extend gains with huge turnover

Xinhua, May 27, 2015 Adjust font size:

Chinese stocks extended gains for the seventh successive trading day to close at a new seven-year high on Wednesday, led by agriculture and military equipment stocks.

The benchmark Shanghai Composite Index rose by 0.63 percent, or 30.82 points, to finish at 4,941.71 points, while the Shenzhen Component Index gained 0.36 percent, or 60.05 points, to close at 16,963.52 points.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, rose 0.29 percent, or 10.44 points, to end at 3,628.67 points.

During Wednesday's trading, gainers outnumbered losers by 516 to 404 in Shanghai and by 815 to 586 in Shenzhen. Altogether, 380 shares rose by the daily limit of 10 percent.

Combined turnover for the two bourses was flat from Tuesday's record high of 2.15 trillion yuan (351.32 billion U.S. dollars).

On Tuesday, President Xi Jinping urged authorities to implement the strictest rules on farmland protection with more effective measures. Premier Li Keqiang also instructed authorities to improve land use efficiency.

As a result, the agriculture sector ended the trading day with its sub-index surging more than 3 percent.

Military equipment stocks continued robust performance as China issued its first white paper on the country's military strategy on Tuesday.

The white paper, "China's Military Strategy", issued by the State Council Information Office, outlined a strategy unifying strategic defense and operational and tactical offense.

Medicine and steel shares also led the growth.

Analysts predicted further gains in Chinese stocks with approaching international capital.

FTSE, a London-based global index provider, announced on Tuesday it has started the transition to include China A Shares in its global benchmarks.

The initial weighting of China A Shares in the indexes will be approximately 5 percent. It is expected to increase to 32 percent when China A Shares are fully available to international investors, according to FTSE's announcement.

Haitong Securities estimated that the move will inject up to 500 billion U.S. dollars into the A Shares.

Meanwhile, U.S.-based MSCI has announced it is considering whether to include China A Shares in its benchmarks. The decision will be published on its website June 10. Endi