Markets spurred higher as battery, property shares advance

Stock markets in Shanghai and Shenzhen shrugged off early dips to end Thursday with respectable gains as real estate, financial, coal and nonferrous metal stocks advanced in heavy trading.

The Shanghai Composite Index climbed 11.83 points, or 0.59 percent, to close at 2,006.10; while the Shenzhen Component Index edged up 1.30 percent, or 100.38 points, to finish at 7,804.11.

Combined turnover at the two exchanges hit 189.7 billion yuan ($30.95 billion), up from Wednesday's 178.5 billion yuan.

Both indices opened lower Thursday but were later buoyed by strong performances from heavily weighted sectors. Lithium battery makers were pulled along by the updraft to notch some of the day's largest gains. Media stocks were notable laggards Thursday following impressive rallies the previous day.

Equities for Shanghai-based firms got a boost from the State Council's announcement late Wednesday that the Chinese mainland's first free trade zone would be opened in the city. Both Shanghai Material Trading Co and Shanghai Wanye Enterprises Co hit the 10-percent daily limit to tap out at 4.69 yuan and 3.41 yuan respectively.

Several shares related to lithium batteries redlined as well. Zhejiang Nanyang Technology Co and Zhejiang Great Southeast Co both advanced by the daily limit to close at 6.13 yuan and 7.04 yuan respectively.

Shares of property developer China Vanke Co jumped 3.59 percent to 9.80 yuan after the Securities Times reported that the firm's 4.87-billion yuan bid for a parcel of commercial land in the suburbs of Shanghai had been accepted Wednesday. Vanke's winning offer was the highest made in Shanghai this year, according to the official newspaper.

Despite recent improvements - including the Shanghai Composite's move back above the psychologically important 2,000-point barrier - analysts were mostly cautious with their short-term outlooks on mainland markets Thursday. Most urged investors to remain on their guard as the week winds down.