IPOs, liquidity hopes send markets surging

The stock markets in the Chinese mainland rallied on Thursday, boosted by the surge of three new listings in Shenzhen and expectations of more liquidity in the market.

The benchmark Shanghai Composite Index jumped by 0.65 percent or 13.18 points to 2,038.68 points on Thursday, while the Shenzhen Component Index increased by 1.03 percent or 74.23 points to 7,291.88 points.

The combined turnover on the two bourses was 178.12 billion yuan ($28.61 billion) on Thursday, with the Shenzhen exchange contributing to 111.59 billion yuan. The total turnover was 25.6 percent higher than Wednesday.

The stock markets were boosted by sharp surges in three companies' new listings on Thursday in Shenzhen. Also, the People's Bank of China, the central bank, abstained from open market operations on Thursday, Reuters cited traders as saying, meaning it will inject a net 12 billion yuan into the market this week, easing some jitters about a possible cash crunch.

Security brokerage stocks soared by 1.13 percent on Thursday, thanks to the new IPOs. Shanghai-listed Pacific Securities led the growth in the sector by rising 3.28 percent, with Industrial Securities Co being the second-biggest gainer after rising 2.96 percent.

The iron and steel sector gained 1.59 percent on Thursday, while iron ore futures rose as much as 3.5 percent to their highest level in a month.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, surged by 2.03 percent or 27.56 points to 1,386.27 points on Thursday.