File photo:VCG

 

The Chinese stock market has fully entered bull-market territory and the A-share market will see an upward trend amid some fluctuations in the second half of the year, analysts said on Friday.

The market surged amid the resumption of Chinese economic activities at a fast pace since the COVID-19 epidemic ebbed in the country.

The benchmark Shanghai Composite Index closed up 2.01 percent at 3,152.81, while the blue-chip CSI300 index climbed 1.93 percent to 4,419.60 points, its highest level since July 1, 2015. The smaller Shenzhen index rose 1.33 percent at Friday's close, and the NASDAQ-style ChiNext board climbed 1.57 percent.

The daily turnover of the Shanghai and Shenzhen bourses reached 1.17 trillion yuan ($170 billion) on Friday, an increase of 65 billion yuan from the previous day.

Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, told the Global Times that consumption-related shares concerning wine, drinks and drugs have made significant gains in the first half of this year.

Chinese stocks climb to highest level since 2015

 Shares of Chinese liquor giant Kweichow Moutai Co have become the priciest in the Chinese mainland, surpassing 1,500 yuan per share in June. The distiller has seen its shares soar about 1,350 percent the past decade.

Technology-related shares including companies in the 5G and chipset sectors also surged in the first half of the year, said Yang.

"The conditions for the Chinese stock market's entry into a new stage of development have matured, and a bull market is rising in the East," said Li Daxiao, chief economist at Shenzhen-based Yingda Securities. 

"The second half of the year will see a slow bull market with an upward trend despite some fluctuations," said Yang.

As the COVID-19 pandemic has been ravaging the global economy and global assets over the past few months, China's A shares remained among the best-performing shares across global stock markets, analysts said.

The Hong Kong stock market also continued its upward trend on Friday following a surge the previous day when the benchmark Hang Seng Index closed 2.85 percent up to reach over 25,000 points. It was the first trading day after the National Security Law for the city took effect.

The Hang Seng Index was up 0.99 percent at Friday's close. The index has surged 3.55 percent this week, up more than 20 percent compared to its lowest point in March, signifying the market's entry into technical bull market territory.

The gains in the Hong Kong stock market are in sharp contrast with the US' frequent threats, which were intended to cause panic in one of the world's financial hubs.

Chinese tech giant Tencent, listed on the Hong Kong bourse, saw its shares rise 1.16 percent at close on Friday, bringing its market capitalization beyond HK$5 trillion ($645 billion).