China stocks close higher as 2013 closes

A Chinese investor looks at prices of shares (red for price rising and green for price falling) at a stock brokerage house in Shanghai, China, Dec 31, 2013. [Photo/icpress.cn]

BEIJING -- Chinese shares closed higher on the last trading day of 2013, with the benchmark Shanghai Composite Index up 0.88 percent, or 18.45 points, to finish at 2,115.98.

The Shenzhen Component Index rose 1.53 percent, or 122.49 points, to finish at 8,121.79.

The gains on Friday did not reverse the losing trend of the stock market in 2013.

While the Chinese economy expanded 7.7 percent in the first three quarters, the Shanghai Composite Index has declined more than 7 percent since the markets opened for trading on Jan. 4, and the Shenzhen Component Index made an annual loss of almost 11 percent, putting Chinese stock markets among the world's worst performers.

Low confidence in the nation's stock market due to its multiple weaknesses diverted investors to other more profitable choices, said Lei Li, an analyst at 0033.com, a financial services provider. High levels of profit-taking and financial scandals further hurt confidence, Lei said.

Compared to the bleak performance of the main board, the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, closed the year with an annual gain of more than 80 percent, amid the nation's efforts to push forward economic restructuring by promoting emerging industries.

The ChiNext fell 0.27 percent to close at 1,304.44 on Tuesday after the the nation's securities regulator approved the listing of five companies on Monday evening.

This resumption of initial public offerings (IPO) comes after a break of more than a year. The China Securities Regulatory Commission unveiled a reform in late November that no longer requires the market regulator's approval for new IPOs. More companies are expected to complete preparation for listing by the end of January.

In Tuesday's trading, total turnover on Shanghai and Shenzhen bourses rose to 163.76 billion yuan ($26.86 billion) from 160.18 billion yuan on the previous trading day.

Brokers and bank shares led the rise with China Merchants Securities up 1.52 percent to 12.68 yuan per share; Ping An Bank surged 4.34 percent to 12.25 yuan; China Life gained 1 percent to end at 15.13 yuan.