SHANGHAI - Chinese blue-chip shares rose for a sixth straight day to close at a more than five-year high on Tuesday, as retail investors rushed to join an officially sanctioned bull market, but stocks pared gains late in the day as some traders booked profits.
The blue-chip CSI300 index finished the day up 0.6 percent at 4,698.13, its highest close since June 25, 2015
The blue-chip CSI300 index finished the day up 0.6 percent at 4,698.13, its highest close since June 25, 2015. The Shanghai Composite Index added 0.37 percent to 3,345.34, its highest close since Feb 6, 2018.
Both indexes pulled back from earlier gains of more than 2 percent as investors consolidated their positions after some analysts drew parallels with a stock market boom-and-bust in 2015. The CSI300 has risen more than 14 percent over the past six sessions.
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The Shanghai index had its best day in nearly five years on Monday after an editorial in the official China Securities Journal said the country needs more share market gains to fund a rapidly developing digital economy.
Financial shares, which had risen 9 percent on Monday, fell 1.19 percent on Tuesday, but analysts said broader gains in the market could continue.
The Shanghai Composite remains more than 35 percent below its 2015 peak.
Trading activity was frenetic, with about 65.78 billion shares traded on the Shanghai exchange, compared with a 30-day moving average of 25.45 billion shares a day.
The Shenzhen Component Index rose 1.72 percent and the ChiNext Composite index added 2.44 percent.
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Gainers outnumbered losers by 741 to 712 in Shanghai, and 1,345 to 789 in Shenzhen.
Shares of consumer electronics led the gains, with the Veken Technology Co., Ltd. surging by the daily limit of 10 percent to 7.12 yuan, buoyed by the recovery of the industry with the development of 5G commercial services.
Liquor makers also secured solid gains, as shares of the Anhui Golden Seed Winery Co., Ltd. saw its shares rise 8.29 percent to 8.1 yuan apiece as consumption increased.
