Sharp gains for shares on first trading day

China stocks performed strongly to close the first trading day of 2021 with sharp gains across all boards.

The benchmark Shanghai Composite Index rose 0.86 percent to 3,502.96 points, while the smaller Shenzhen Component Index surged 2.47 percent to end at 14,827.47 points.

The STAR 50 Index, meanwhile, jumped 2.09 percent to 1,422.12 points, and the ChiNext Composite Index took a 3.77 percent bump up to 3,078.11 points.

Turnover on the two bourses in Shanghai and Shenzhen expanded sharply to 1.16 trillion yuan (US$179.6 billion) compared with 961.7 billion yuan in the previous session. The Shanghai Stock Exchange posted a total trading volume of 523.4 billion yuan, up 72.9 billion yuan.

As for individual shares, stocks of over 160 listed companies rocketed more than 9 percent, while 13 declined by over 9 percent.

Capital, however, flowed out of the Chinese mainland, positing a net outflow of 542 million yuan via the Stock Connect schemes linking Shanghai and Shenzhen with Hong Kong.

Among industries, agricultural shares led the rises. The ChiNext-listed Jiangsu Lihua Animal Husbandry Co jumped nearly 20 percent, while Dahu Aquaculture Co and Shenzhen Kingsino Technology Co both advanced to hit the daily limit of 10 percent on the main Shanghai and Shenzhen boards.

Shares related to Tesla, meanwhile, were among the big gainers after the US electric carmaker on Saturday announced sharp price cuts for its latest models in China. Over 20 companies, including Contemporary Amperex Technology Co, Shenzhen Everwin Precision Technology Co and Jouder Precision Industry (Kunshan) Co all surged over 10 percent.

The aerospace and military defense industry, precious metal shares, and semi-conductor stocks also posted rises.

Stock prices of insurance companies and banks, however, closed lower in, as the market expected a stricter credit policy on the mainland. Shares in the real estate sector and education also fell.