Business / Markets

Stocks rally thanks to better corporate earnings

By Dai Tian ( Updated: 2016-03-30 16:41

Stocks rally thanks to better corporate earnings

An investor watches an electronic board showing stock information at a brokerage office in Beijing, March 30, 2016.[Photo/VCG]

Stocks rallied the most in a month on Wednesday, after some listed companies reported better-than-expected earnings.

The Shanghai Composite Index closed at 3,000.64, up 2.8 percent, while the Shenzhen Component Index surged 3.5 percent to 10,445.69.

Tech companies and brokerages led the gain, with Shenzhen Sunwin Intelligent Co, Synthesis Electronic Technology Co and Sichuan Xun You Network Technology Co jumping by the daily limit of 10 percent.

Nineteen brokerages including CITIC Securities, Guosen Securities, Industrial Securities and Huatai Securities climbed more than 3 percent on Wednesday.

Of 117 companies that have released last year's financial results by Wednesday, 77 reported growth in net profit, and 74 saw increase in revenue, according to Securities Times.

The Bank of Communications advanced 2.2 percent after the company reported a 1 percent increase in its net profit to 66.5 billion yuan. Sinopec and PetroChina rose 4.2 and 2.5 percent respectively despite both suffering a profit decline last year.

The rally also comes as Federal Reserve Chair Janet Yellen voiced caution about raising US interest rates, according to Bloomberg.

The CSI 300 Index closed at 3,216.28, up 2.6 percent.

Agencies contributed to this story.

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