A-share bull run likely to continue

Although the drivers of the Chinese A-share market rally — small-caps, large-caps, chipmakers and, today, engineering and construction stocks — have been changing in quick succession over the past few months, the market remains solid and fairly insulated from external volatility as the ongoing economic recovery will likely sustain the bull run this year, equity pundits said.

The benchmark Shanghai Composite Index climbed 0.55 percent to close at 3263.31 points on Wednesday, while the Shenzhen Component Index shed just 0.03 percent to close at 11413.43 points. The technology-focused ChiNext in Shenzhen slid marginally.

State-owned enterprises listed in the A-share market, which are mostly heavyweights, were the major contributors to the Shanghai index rally. They reported an average daily gain of 1.95 percent. China Petroleum Engineering Corp, China Aluminum International Engineering and China XD Electric Co Ltd even touched the daily upper limit of 10 percent.