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Asia, News

China blue-chip shares end at over 5-yr high in bull run’s 6th day

* SSEC +0.37%, CSI300 +0.6%

* CSI300 has risen more than 14% in six sessions

* Indexes trim gains as state media-backed rally enters sixth day

SHANGHAI, July 7 (Reuters) – Chinese blue-chip shares rose for a sixth straight day to close at a more than five-year high on Tuesday, as retail investors rushed to join an officially sanctioned bull market, but stocks pared gains late in the day as some traders booked profits.

The blue-chip CSI300 index finished the day up 0.6% at 4,698.13, its highest close since June 25, 2015. The Shanghai Composite Index added 0.37% to 3,345.34, its highest close since Feb. 6, 2018.

Both indexes pulled back from earlier gains of more than 2% as investors consolidated their positions after some analysts drew parallels with a stock market boom-and-bust in 2015. The CSI300 has risen more than 14% over the past six sessions.

The Shanghai index had its best day in nearly five years on Monday after an editorial in the official China Securities Journal said the country needs more share market gains to fund a rapidly developing digital economy.

Financial shares, which had risen 9% on Monday, fell 1.19% on Tuesday, but analysts said broader gains in the market could continue.

“The market is doing well because there are some genuine signs that the economy is improving, if you look at PMI numbers, retail sales numbers, industry profits,” Tai Hui, Asia chief market strategist at J.P. Morgan Asset Management said at a media briefing in Hong Kong.

“As long as the rally is justified, I don’t think the regulators will be overly concerned,” he said.

The Shanghai Composite remains more than 35% below its 2015 peak.

Trading activity was frenetic, with about 65.78 billion shares traded on the Shanghai exchange, compared with a 30-day moving average of 25.45 billion shares a day.

The smaller Shenzhen index rose 1.71% and the start-up ChiNext Composite index added 2.44%. (Reporting by Andrew Galbraith; additional reporting by Noah Sin in Hong Kong; editing by Uttaresh.V)


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