BEIJING, July 29 (Xinhua) -- Chinese stocks bounced back with across-the-board gains Thursday, ending a losing streak as market sentiment recovered.
The benchmark Shanghai Composite Index rose 1.49 percent to close at 3,411.72 points while the Shenzhen Component Index jumped 3.04 percent to 14,515.32 points.
The ChiNext Index, tracking China's NASDAQ-style board of growth enterprises, jumped 5.32 percent to close at 3,459.72 points Thursday.
The combined turnover of stocks covered by the two main-board indices came in at 1.25 trillion yuan (about 192.4 billion U.S. dollars) on the 7th straight day to exceed the 1-trillion-yuan threshold.
The rebound came after sharp declines seen early this week, which sent the benchmark Shanghai Composite Index down over 5 percent from the close last week.
The sell-off was largely affected by volatile market sentiment and the A-shares' sound fundamentals remain unchanged, said Yang Delong, chief economist with First Seafront Fund.
In fact, the corrections have created opportunities for investors to build up their positions in a capital market undergoing reforms that are poised to improve the quality of listed companies, Yang added.
The world's second largest economy reported solid recovery momentum in the first half of this year, with a GDP growth of 12.7 percent year on year.
To further support the real economy, the country's central bank announced that it would cut the reserve requirement ratio by 50 basis points for eligible financial institutions from July 15.
With sound economic fundamentals and relatively loose liquidity, the A-share market could bottom out after bearish sentiment of both domestic and foreign investors fades out, CITIC Securities said in a research note.
Data by financial information provider Wind showed that the A-share market Thursday saw net inflow of funds through "northbound trading," or money invested from Hong Kong into the Chinese mainland through the stock connect programs, indicating recovery in confidence of foreign investors.
As China further carries out capital market reforms and widens its access to foreign investors, the A-share market will see enhanced long-term investment value, analysts said. Enditem
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