Chinese stocks continue to close higher on stimulus policies

Chinese stocks closed higher on Wednesday, buoyed by a raft of stimulus policies announced by the authorities on Tuesday.

The benchmark Shanghai Composite Index closed up 1.16 percent to 2,896.31 points, while the Shenzhen Component Index closed 1.21 percent higher at 8,537.73 points.

The combined turnover of stocks covered by the two indices surpassed one trillion yuan (about 142.45 billion U.S. dollars), up from 974.8 billion yuan recorded on the previous trading day, hitting a new high in nearly five months.

"Today, the turnover of A-shares surpassed one trillion yuan, which is the first time that the combined turnover of the Shanghai and Shenzhen stock markets has exceeded one trillion yuan since May 6. When a market or an asset has a relatively high volume of trading, there are more opportunities," said Zhang Wenlang, chief macro analyst of China International Capital Corporation Limited (CICC)’s research department.

The China Securities Regulatory Commission (CSRC) on Tuesday announced a guideline on market value management practices, and is soliciting public opinion in the meantime.

The CSRC's draft guideline for public consultation requires listed companies to focus their efforts on enhancing company quality, boosting operational efficiency and increasing profitability.

They are encouraged to lawfully and compliantly use mergers and acquisitions, equity incentives, cash dividends, investor relations management, information disclosure and share repurchases to elevate their investment value.

"For the capital market, the guideline has been a strong support. So how to increase investors' sense of gain? First, the quality of listed companies should be enhanced. These firms need to have a rather stable long-term profitability with sound growth. Meanwhile, they should be willing to share their fruits of business performance with average investors," said Wang Sheng, deputy director of SWS Research Co., Ltd.

On the same day, the CSRC also issued a guideline on released new measures aimed at guiding mergers and acquisitions among listed companies.

Regarding mergers and acquisitions, the CSRC emphasized its commitment to actively supporting listed companies in pursuing mergers and acquisitions activities centered around strategic emerging industries and future industries.

The CSRC aims to channel more resources toward new quality productive forces. Additionally, it encourages listed companies to enhance industrial consolidation.

"Mergers and acquisitions is an important measure to optimize the resources allocation in capital market, enhance the competitiveness of listed companies and promote the adjustment of economic structure. Especially under the current circumstance of accelerated global industrial transformation and rapid transformation and upgrading of China's economic structure, it is more necessary to make full use of mergers and acquisitions, so as to facilitate industrial integration as well as improve quality and efficiency," Zhang said.

Chinese stocks continue to close higher on stimulus policies

China's Minister of Commerce Wang Wentao outlined the key priorities of the 32nd Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting, which opened on Friday in Suzhou, East China's Jiangsu province.

In an interview with CGTN ahead of the two-day meeting, Wang said free trade, digital cooperation and green economy are high on the agenda of the meeting.

"The key areas include advancing regional economic integration and the Free Trade Area of the Asia-Pacific, supporting the World Trade Organization (WTO) in strengthening digital cooperation and developing green economy. At present, the international situation is marked by intertwined turbulence and chaos, with intensified geopolitical instability. The rise of unilateralism and protectionism poses serious challenges to the international economic and trade order, disrupting global and Asia-Pacific development. Against this backdrop, all parties have higher expectations for this trade ministers' meeting, hoping that it can build consensus and deliver outcomes," Wang said.

This year marks China's third time hosting the APEC meetings and the 35th anniversary of its membership.

By 2025, China had become the largest trading partner of 13 APEC economies. Trade between China and APEC economies reached 3.7 trillion U.S. dollars, accounting for 57.8 percent of China's total foreign trade.

China has signed 24 free trade agreements or economic and trade arrangements with 31 countries and regions, including 15 APEC economies. In recent years, China has also completed upgrades of free trade agreements with APEC economies such as Singapore and Peru.

The minister said that China has always been a firm supporter and an important contributor to APEC.

"We have actively shared our vast market and development opportunities with all parties. China's door to the world will only open wider and wider. Facing the common challenges, China will continue to fulfill its responsibilities as a major country, further deepen reform, expand high-standard opening-up, and continue to provide new opportunities for the Asia-Pacific region and the world with its new achievements in Chinese modernization," the minister said.

China's Commerce Minister outlines priorities for 32nd APEC trade ministers' meeting