SHANGHAI: China’s major indexes eked out gains on Monday, helped by robust strength in Shanghai’s tech-focused STAR Board companies, as Beijing pledged continued policy support for its tech sector.
The blue-chip CSI300 index edged up 0.1% to 5,085.79, while the Shanghai Composite Index added 0.4% to 3,534.32.
Shenzhen’s start-up board climbed 0.5%, while Shanghai’s tech-focused STAR50 index gained 2.5%.
Advanced Micro-Fabrication Equipment Inc China jumped as much as 12% before closing 7.4% higher, after China’s state integrated circuit fund participated in the company’s private placement.
Six of China’s ministries including Ministry of Industry and Information Technology pledged on Friday to foster outstanding manufacturers and support qualified companies to get financing from the capital markets.
Though investors turned cautious after a slump on Friday, when major indexes fell the most in four months amid growth concerns.
“Most of (China’s) broad-based indices and industry indices now stand at the end of a rising trend, and the stock rally since the first quarter could have ended, leading to a potential correction going forward,” Essence Securities noted in a report.