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Market boosted by preferred shares pilot program

2014-03-24 08:00 Global Times Web Editor: qindexing

Stock markets in the Chinese mainland soared on Friday after the securities regulator unveiled rules for a trial program for preferred shares.

The benchmark Shanghai Composite Index gained 54.14 points or 2.72 percent to 2,047.62 points on Friday after breaking the psychologically important level of 2,000 points on Thursday. The index saw a weekly gain of 2.16 percent from the previous Friday, March 14.

The Shenzhen Component Index jumped 243.37 points or 3.48 percent to 7,241.57 points on Friday. It climbed 0.03 percent week-on-week. Combined turnover on the two bourses on Friday was 228.72 billion yuan ($36.74 billion), up from Thursday's 209.15 billion yuan.

The Chinese Securities Regulatory Commission on Friday unveiled rules for the long-awaited pilot program allowing companies to sell preferred shares.

The scheme offers fresh funding that could boost market vitality amid ongoing financial reform, analysts say.

Banks, brokerages and coal companies jumped more than 4 percent on average on Friday.

The banking sector, expected to be the biggest beneficiary of the preferred shares initially, rose 4.39 percent, with Shanghai Pudong Development Bank Co gaining by the daily limit of 10 percent on Friday.

Shares in coal companies were also lifted. Shanxi Coal international Energy Group Co and two other companies were up by the daily limit of 10 percent on Friday.

The real estate sector, which has been sluggish throughout the week due to a default concern in the sector, also rose by 3.65 percent, with nine stocks soaring by the daily limit of 10 percent.

The country's biggest developer by sales, China Vanke Co, increased 6.66 percent to 8.01 yuan, while the second-largest Poly Real Estate Group rose by 6.82 percent to 7.20 yuan.

ChiNext board, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, nudged up 2.18 points or 0.15 percent at 1,419.84 poinats on Friday. The index fell by 0.99 percent from the previous Friday.

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