A-Shares Snap Back, Electronics Driven by Gov’t Subsidy
The Shanghai Composite Index decreased 0.62% to close at 3,109.11, while the Shenzhen Composite Index climbed 0.22% to end at 1,211.25 on Wednesday. Trading volumes on the Shanghai and Shenzhen Stock Exchanges were RMB 122.8 billion and RMB 95.93 billion, respectively.
China's National Development and Reform Commission (NDRC) encouraged eligible companies to apply for a national subsidy that will promote the development of new electronic devices in a March 30 posting on NDRC's official site. The notice spurred shares of Shenzhen Deren Electronic (002055.SZ) up 9.98%, while Irico Display Devices (600707.SH) climbed 5.63% and Shenzhen Topband (002139.SZ) rose 5.19%.
Iron and steel companies performed weakly on Wednesday, following Australia's BHP Billiton's (NYSE:BHP) March 30 announcement that the company had reached an agreement with a significant number of customers throughout Asia to move existing iron ore contracts from an annual fixed price to a shorter term pricing agreements. Shares of Nanchang Changli Iron & Steel (600507.SH) dropped 6.72%, while Laiwu Steel Corporation (600102.SH) dipped 2.84%.
A total of 432,897 stock accounts were created last week, 432,010 for A-shares and 887 for B-shares, representing a four-month high and the fifth consecutive week of growth in the total, Securities Times reported quoting data released by China Securities Depository and Clearing Corporation Limited.
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