China Stocks Rally As Nuclear Shares Surge

Hong Kong stocks rose Friday morning, extending gains following two straight sessions of advances, while the Shanghai market rallied on from a fresh seven-year closing high the previous day, led by a surge in nuclear-related shares. Hong Kong's Hang Seng Index rose 0.6%, with the mainland-China-tracking Hang Seng China Enterprises Index up 1.1%. The Shanghai Composite Index climbed 1.7% to 4,266.33, topping 4,200 for the first time since March 2008. The nuclear-energy stocks shined again after China's cabinet, the State Council, approved construction of the country's first domestically designed nuclear reactor on Wednesday. Nuclear-power-equipment manufacturer Shanghai Electric Group Ltd. jumped 5.6% following a 21% surge the previous session, and rival Dongfang Electric Corp. added 3.2% after leaping 14.5% a day earlier. Nuclear-power project developer CGN Power Co. also rose 2.7%. In Shanghai, Shanghai Electric Group, Dongfang Electric Corporation, and China First Heavy Industries Co. were all suspended from trading for a second day after their shares soared limit-up by 10%. The country's two largest train makers China CNR Corp. and CSR Corp. also rose sharply as investors focused on their planned merger after receiving the green light from securities regulators earlier this month, with China CNR up 6.4%, and CSR up 5.8%. Their Shanghai-traded shares were also halted from trading after exceeding the 10% price-gain limit

Copyright © 2015 MarketWatch, Inc.