Chinese stock markets closed higher on Wednesday on pro-market policies and buyback reports concerning petrochemical sector.

 

The Composite Stock Index on the Shanghai Stock Exchange, which comprises yuan-denominated A shares and foreign-currency B shares, closed at a new high in 2006 of 1,299.17 points, up 1.0 percent. Total turnover was 14.7 billion yuan (US$1.8 billion).

 

The index reached 1,300.99 points during afternoon trading session, a level last seen in 2004.

 

The major index of Shenzhen Stock Exchange, the Shenzhen Composite Index, closed at 3,362.15 points, up 0.8 percent, with total turnover of 7.9 billion yuan (US$980 million).

 

A total of 463 shares listed on the two bourses went up on Wednesday, 657 shares were down and 72 shares maintained their prices.

 

China Securities Depository and Clearing Corp. Tuesday announced the policy on opening accounts for investment in China's A-share markets by overseas strategic investors, eliminating the last hurdle for overseas investors to invest in the Chinese market.

 

Analysts say the entry of those strategic investors will result in inflow of huge overseas investment in Chinese listed firms.

 

Share price of Sinopec, the country's major petrochemical firm, rose by 6.1 percent, apparently helped by its decision to buy back shares of four lucrative petrochemical and oil firms.

 

(Xinhua News Agency February 16, 2006)