Chinese stock reaches 15-month high, led by Xiongan New Area plan

Xinhua/China Daily Published: 2017-04-07 17:31:16
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Chinese benchmark Shanghai Composite Index closed at a 15-month high on Friday thanks to boosted market sentiment over Xiongan New Area, a new economic zone to be built near Beijing.

Chinese benchmark Shanghai Composite Index went up 0.17 percent to close at 3,286.62 points. [Screenshot: finance.sina.com.cn]

Chinese benchmark Shanghai Composite Index went up 0.17 percent to close at 3,286.62 points. [Screenshot: finance.sina.com.cn]

The benchmark Shanghai Composite Index went up 0.17 percent to close at 3,286.62 points. The smaller Shenzhen Component Index closed 0.12 percent higher at 10,669.48 points.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, increased 0.09 percent to close at 1,946.05 points.

Combined turnover on the two bourses came in at 566 billion yuan (about 82 billion U.S. dollars), up from 553 billion yuan the previous trading day.

Aerial view of Xiongxian County, north China's Hebei Province. The New Area, about 100 km southwest of downtown Beijing, will span three counties that sit at the center of the triangular area formed by Beijing, Tianjin and Hebei's provincial capital Shijiazhuang. [Photo: Xinhua]

Aerial view of Xiongxian County, north China's Hebei Province. The New Area, about 100 km southwest of downtown Beijing, will span three counties that sit at the center of the triangular area formed by Beijing, Tianjin and Hebei's provincial capital Shijiazhuang. [Photo: Xinhua]

China on Saturday announced plans to create Xiongan New Area, which authorities described as a "major historic and strategic choice" that would be "crucial for the millennium to come."

A total of 26 stocks traded on the two bourses that are related to the strategy rose by about ten percent, mainly in sectors such as property, construction and building materials.

China Fortune Land Development, a property and industrial park developer, saw its shares surge by the daily limit of 10 percent for three consecutive days.

Analysts said that Xiongan, some 100 kilometers southwest of downtown Beijing, will create fresh business opportunities.

China Shipping Industry Corporation is located within the Second Ring Road of Beijing and covers an area of 36,000 square meters and has 600 employees.[File Photo: china.com]

China Shipping Industry Corporation is located within the Second Ring Road of Beijing and covers an area of 36,000 square meters and has 600 employees.[File Photo: china.com]

So far,  over a dozen state-owned enterprises have expressed their support for Xiongan, including China Shipping Industry Corp.

The shipbuilder giant announced plans to move some of its businesses to the new area.

According to the announcement, the conglomerate has injected assets of seven power-related sectors into its listed company, Fengfan Co Ltd, supplier to dozens of automakers including Beijing Hyundai.

The company will move the headquarter of its subsidiary Beijing Great Wall Electronic Equipment Co Ltd to a marine equipment industrial park in Hebei province.

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