China's tech-heavy ChiNext rallies for second day on historic market reform

Shares on China's tech-heavy ChiNext board rallied for the second trading day on Tuesday as investors cheered the latest reform and relaxation of the bourse's listing and trading rules. ** Shares of a dozen companies surged for a second day after their debut on the ChiNext board on Monday, following a historic reform that allows Shenzhen to challenge Shanghai for tech listings.

Shares on China's tech-heavy ChiNext board rallied for the second trading day on Tuesday as investors cheered the latest reform and relaxation of the bourse's listing and trading rules.

** At the close, the blue-chip CSI300 index was up 0.13%, with its consumer staples sector up 1.85%, while the utilities index was down 1.75%. The Shanghai Composite index was down 0.36% at 3,373.58

** ChiNext rose 0.63%, while the STAR50 index was down 1.58%.

** Shares of a dozen companies surged for a second day after their debut on the ChiNext board on Monday, following a historic reform that allows Shenzhen to challenge Shanghai for tech listings.

** Anhui Jinchun Nonwoven Co triggered intraday circuit breakers twice on Tuesday, as its shares soared by 76.9%. Shares of Shengyuan Environmental Protection Co , which debuted a day earlier, also surged 56.1% on Tuesday.

** New ChiNext shares can now trade without a daily cap for the first five trading days and can trade up to 20% in sessions afterward. It allowed shares to rise or fall up to 10% previously.

** BOC International analysts wrote that a revamped ChiNext board will benefit brokerages who have listing projects on hand and new shares in the short term, and tech shares in the long run.

** To add relief to the market, China said on Tuesday it agreed with the United States to continue pushing forward the implementation of the Phase 1 trade deal reached earlier this year during a call between top trade negotiators of the two countries.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.38%, while Japan's Nikkei index closed up 1.35%. ** At 07:02 GMT, the yuan was quoted at 6.9125 per U.S. dollar, 0.09% firmer than the previous close of 6.919.