Shanghai Composite Index reaches 20-month peak

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China's stocks spiraled upwards on Friday morning with the benchmark Shanghai Composite Index reaching a 20-month high and breaking 3,300 points powered by financial and resources shares.

Strong earnings from blue-chip companies and restructuring of state-owned enterprises boosted investors' confidence.

Chinas' blue-chip CSI300 index went up 1 percent to 3,771.43 points during lunch break while the Shanghai Composite Index grew 1.2 percent to 3,309.31 points.

Analysts said, if the Shanghai Index can stand firmly above the 3,300 point mark, there would be a pause for market bears, Reuters reported, noting the level has only been breached for a short time since 2015 and always followed by a quick fall each time.

Accelerating reforms in China's SOEs also encourages investors.

The country's major telecom carrier China Unicom just unveiled its reform plans, followed by China National Gold Group Gold Jewellery Co's announcing about mixed-ownership reforms.

The Shenzhen Composite Index opened 0.03 percent higher at 10,556.55 points. The ChiNext Index, Chinas' NASDAQ-style board of growth enterprises, was down 0.06 percent to open at 1,794.7 points.

Source(s): Reuters ,Xinhua News Agency