Chinese Stocks Rise As STAR Market Shines On Regulatory Nod to Launch ETFs

SHANGHAI (Sept 14): Chinese shares rose on Monday, with Shanghai’s Nasdaq-style STAR Market leading gains after securities regulator approved the first batch of exchange-traded funds (ETFs), which are expected to draw fresh funds into the market.

Shanghai’s tech-focused STAR50 index was up 3.31%​, while the start-up board ChiNext Composite index was higher by 1.8%.

China Asset Management Co (ChinaAMC), E Fund Management Co and Huatai-PineBridge Fund Management Co said separately on Friday they had received regulatory approval to launch ETFs tracking the benchmark STAR50 index.

At the midday break, the Shanghai Composite index was up 0.56% at 3,278.68. China’s blue-chip CSI300 index was up 0.57%.

Financial sector climbed up marginally after China issued new rules on Sunday to regulate financial holding companies, in its latest move to prevent systematic risks to the nation’s vast financial sector.

Developments in the Sino-U.S. tensions remained one of the key market focus. Sources told Reuters that ByteDance abandoned the sale of TikTok in the United States on Sunday in pursuit of a partnership with Oracle Corp that it hopes will spare it a U.S. ban while appeasing China’s government.

Chinese H-shares listed in Hong Kong rose 0.49% to 9,800.16, while the Hang Seng Index was up 0.67% at 24,666.66.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.47% while Japan’s Nikkei index was up 0.68%.

The yuan was quoted at 6.8297 per U.S. dollar, 0.07% firmer than the previous close of 6.8348.

The top percentage gainers in the SSEC were Chongqing Road and Bridge Co Ltd, up 10.18%, followed by Yingkou Jinchen Machinery Co Ltd, gaining 10.01% and Chongqing Brewery Co Ltd, up by 10%.

The top gainers among H-shares were Sunny Optical Technology Group Co Ltd, up 4.9%, followed by China Unicom Hong Kong Ltd, gaining 4.26% and Tencent Holdings Ltd , up by 3.88%.

Source: The Edge