BEIJING, Oct. 12 (Xinhua) -- Chinese stocks rebounded after steep declines Thursday, closing higher Friday with blue-chip stocks leading the rally.
People watch the stock markets in Nanjing, Jiangsu Province, on Oct. 12. (Photo: VCG)
The benchmark Shanghai Composite Index gained 0.91 percent to close at 1,428.03 points. The Shenzhen Component Index closed 0.45 percent higher to end at 7,558.28 points. Both sprang from slight dips at opening.
Blue-chip stocks led the gains. The SSE 50 Index, which tracks 50 stocks on the Shanghai Stock Exchange with large market capitalization and high liquidity, jumped by 2.24 percent.
Combined turnover on the two bourses stood at 308.9 billion yuan (about 44.7 billion US dollars).
China's A-share market plummeted Thursday along with other major Asian indices in a spillover of US stocks tumble amid fears for rising interest rates and a sell-off in tech shares.
US stocks extended deep losses in volatile trading on Thursday, a day after three major indices dived more than 3 percent, with the Dow Jones Industrial Average falling 2.13 percent and the S&P 500 down 2.06 percent.
Wall Street losses would inevitably affect stock markets worldwide, including the A-share market, but as valuation for Chinese shares is already low, there is little room for it to dip further, according to Yang Delong, chief economist of First Seafront Fund.
The US stock market and the A-share market are at different stages. While the Chinese shares hit rock bottom after months of corrections, the US shares just started heading downhill from the top, according to Yang.
Asian stocks affected by the spillover also recovered, with the Taiwan benchmark TAIEX up 2.44 percent after a 6.31 percent nosedive Thursday. Nikkei 225 rose 0.46 percent and Hong Kong's Hang Seng gained more than 2 percent.
The US market decline may lead to further foreign investment inflow into the A-share market, which totaled over 200 billion yuan in the past six months, signaling optimism over the A-share market, said Yang.
The liquor industry was among the biggest winners on Friday, with the share price of Kweichow Moutai, the country's leading liquor maker, up 3.57 percent.
The financial sector also saw strong performance, with Pingan Bank rising 4.46 percent to end at 10.3 yuan.
Bucking the upward trend, the environment industry was the biggest loser Friday. Hunan-based Yongker Environmental Protection Co., Ltd. dropped by the daily limit of 10 percent to close at 6.09 yuan.
The ChiNext Index, China's NASDAQ-style board, gained 0.52 percent to close at 1,253.92 points Friday.