BUSINESS Xiongan stocks rally on new support from government

BUSINESS

Xiongan stocks rally on new support from government

Xinhua

18:24, January 25, 2019

BEIJING, Jan. 25 (Xinhua) - Public companies related to the development of Xiongan New Area saw their share prices go up substantially on Friday as central authorities announced measures to deepen reforms and expand opening-up in the new area.

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(File photo: VCG)

The sub-index on Xiongan-related companies listed on Shanghai and Shenzhen bourses closed 1.28 percent higher, outpacing the rise of major indices of A shares.

An official guideline said on Thursday China will encourage Xiongan to attract Beijing-based state-owned enterprises and foreign financial institutions, among a raft of favorable policies in aspects including taxation and financing.

In April 2017, China announced the establishment of the Xiongan New Area, which is about 100 km southwest of Beijing and spans three counties in Hebei Province. The new area will undertake noncapital functions of Beijing and help deepen reforms.

The move, dubbed as signs of China's further support for Xiongan's development, boosted share prices of listed companies that have operation or plan to increase presence in the area.

Zhejiang Dun'an Artificial Environment Co., Ltd., a refrigeration and heating equipment manufacturer, surged by the daily limit of 10 percent, while China Fortune Land Development, an industrial city operator, gained 3.32 percent.

Chinese stocks closed higher on Friday, with the benchmark Shanghai Composite Index up 0.39 percent, at 2,601.72 points. The Shenzhen Component Index closed 0.29 percent higher at 7,595.45 points. 

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