Despite sharp retreat of heavyweights represented by PetroChina and Sinopec, share prices on China's Shanghai and Shenzhen bourses rebounded sharply across the board on Wednesday as small-cap stocks, especially those listed on the ChiNext board, regained momentum of buoyancy.
The benchmark Shanghai Composite Index, in which a small number of heavyweights have the majority of weights, moved around the previous close in the afternoon, but recovered from maximum 2 percent fall in the morning. For the whole day, the benchmark Shanghai Composite Index edged up 0.01 percent to end at 4,476.62 points, the Shenzhen Composite Index surged 2.10 percent to end at 2,254.98, the SME Index for small firms soared 1.86 percent to end at 8,798.15 and the ChiNext index jumped 4.08 percent to close at 2,797.52. Combined turnover of the two bourses shrank to 1.30 trillion yuan from 1.7 trillion yuan in the previous trading day, which was still a very heavy level.
Stocks of internet, nonferrous metals, computer equipment, software services, aviation devices, public transport, media and entertainment, and telecom equipment sectors led the gainers on Wednesday, while the leading loser were in transport services, banking, insurance, shipbuilding, and securities dealers sectors. On the stock index futures market, the IF May contract surged 1.51 percent to end at 4,771.0, keeping a discount of 3.33 points to the underlying Hushen 300 Index, which increased 0.68 percent to close at 4,774.33. The SSE 50 May contract increased 0.25 percent to end at 3,295.2, posting a premium of 11.92 points over the underlying SSE 50 Index, which edged up 0.03 percent to close at 3,283.28.
The CSI May contract surged 2.66 percent to close at 8,302.2, keeping a discount of 126.05 points to the underlying CSI 500 stock index, which jumped 1.96 percent to end at 8,428.25.
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