Brokerage gains pull markets to pre-holiday victory

Stock markets on the Chinese mainland closed with modest gains Friday as the financial sector pulled up in afternoon trading.

The Shanghai Composite Index advanced 4.22 points, or 0.20 percent, to finish at 2,160.03; while the Shenzhen Component Index climbed 32.83 points, or 0.39 percent, to end at 8,472.29.

Overall, the Shanghai Composite and the Shenzhen Component were down 1.45 percent and 0.10 percent respectively for the week.

Emerging equities were able to evade the general malaise which weighed on larger stocks. The small and medium-sized enterprise (SME) board index gained 0.34 percent to close Friday at 5,164.75, while the ChiNext index added 1.33 percent to conclude the day at 1,323.76. The SME board index was up 2.26 percent over the previous Friday, carrying the index to its fourth straight weekly victory in a row. The ChiNext index racked up 2.65 percent over the same period, marking its second straight week of gains.

With the National Day holidays just around the corner, combined trading volume dropped to 195.54 billion yuan ($31.95 billion). slumping from Thursday's 243.73 billion yuan.

Brokerage and trust fund stocks picked up 2.91 percent on average thanks to reports of industry consolidation. On Thursday, Haitong Securities Co announced that it will acquire UT Capital Group Co. Founder Securities Co Ltd also announced that it will acquire China Minzu Securities Co, while Southwest Securities Co said it will merge with Southwest Futures. Haitong Securities advanced 4.36 percent to close at 12.69 yuan, while Southwest Securities edged up 1.67 percent to 9.12 yuan. Founder Securities is currently suspended from trading due to its restructuring bid.

Media and entertainment stocks bounced back from their slump Thursday. Sector giants Beijing Enlight Media Co and Shanghai Xinhua Media Co hit the 10-percent daily limit to end at 58.85 yuan and 7.62 yuan respectively.

Stocks tied to Shanghai's free trade zone traded heavily Friday as investors locked in their profits. The sell-off pressure sent related stocks sliding by an average of 3.29 percent on the day. Shanghai Lujiazui Finance & Trade Zone Development Co, Shanghai Jinqiao Export Processing Zone Development Co and Shanghai Material Trading Co each plunged by the 10-percent daily limit.