Global Times reported that the Shanghai and Shenzhen stock markets ended with gains, thanks largely to a stellar performance from the coal sector.

The Shanghai Composite Index edged up 10.11 points or 0.46% to close at 2,185.49; while the Shenzhen Component Index advanced 165.19 points or 1.72% to finish at 9,753.49.

Both markets opened lower due to contractions in US and European stocks overnight. The Shanghai Composite Index swung down in the morning session as insurance and automobile stocks took a nose dive. The index was able to turn around in the afternoon thanks to solid showings from coal and non ferrous metal stocks and ultimately closed out the day with a win.

According to the Beijing News, the Qinhuangdao spot coal e trading platform, the largest electronic trading platform for coal in China, started online operations. Analysts say the platform will help stabilize the coal market by allowing producers to determine reasonable prices for the commodity.

Shenzhen listed Shanxi Meijin Energy Co and Shanghai listed Shanxi Coal International Energy Group Co both shot to the daily limit, closing at CNY 12.18 and CNY 23.01 respectively.

Mr Linus Yip, a strategist at First Shanghai Securities in Hong Kong, said that "Markets are occupied with the slowing in China, so if GDP goes down to 7% or 7.2%, it won't be a good sign."

Source - Global Times

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