Share prices on China's Shanghai and Shenzhen bourses extended strong upbeats on Tuesday as market hearsay went that the central bank recently provided pledged supplementary lending (PSL) to selected banks, which helped the market shrug off liquidity pressure from 20-plus IPOs this week.
Small cap stocks, especially those listed on the ChiNext board, significantly outperformed big cap stocks on Tuesday, with indexes tracking the SME board and ChiNext board refreshing record highs. For the whole day, the benchmark Shanghai Composite Index went up 1.69 percent to end at 4,910.53 points. The Shenzhen Composite Index surged 3.52 percent to end at a record high of 3,029.97, the SME Index for small firms jumped 3.44 percent to end at a historical high of 11,896.23 and the ChiNext index soared 4.92 percent to close at a record high of 3,901.54. Combined turnover of the two bourses expanded to 1.97 trillion yuan from 1.8 trillion yuan on the previous trading day.
Stocks in logistics, public transport, hotel, agricultural, software, telecom equipment, media, internet, medical care, environmental protection, property, automobile and pharmaceutical sectors led the gainers on Tuesday while those in insurance and securities brokerage sectors underperformed. On the stock index futures market, the IF June contract added 1.25 percent to end at 5,264.2, keeping a premium of 102.33 points over the underlying Hushen 300 Index, which went up 1.69 percent to close at 5,161.87. The SSE 50 June contract shed 0.56 percent to end at 3,295.6, keeping a premium of 37.29 points over the underlying SSE 50 Index, which rose 0.43 percent to close at 3,258.31. The CSI June contract advanced 3.54 percent to close at 11,250.4, keeping a premium of 364 points over the underlying CSI 500 stock index, which surged 3.8 percent to end at 10,886.40.
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