China stocks end higher, but weak sentiment limits gains

Source:Reuters-Global Times Published: 2017/8/15 17:58:41

Chinese shares closed higher on Tuesday, but weakening sentiment ate away at gains from the morning session, even as stronger profits at commercial banks helped to support banking shares.

The blue-chip CSI300 index rose 0.31 percent to 3,706.06 points, while the Shanghai Composite Index gained 0.43 percent to 3,251.26 points.

China's CSI300 stock index futures in August rose 0.30 percent to 3,694.4, 11.80 points below the current value of the underlying index.

"We saw a strong rally yesterday and this continued in the morning session, but there aren't stand-out factors supporting further strong gains," said Wang Jun, an analyst at First Capital Securities.

The weak gains followed news that US President Donald Trump had authorized an inquiry into China's alleged theft of intellectual property in the first direct trade measure by his administration against Beijing, but the move, which is unlikely to prompt near-term change, did not appear to be a factor in the day's trading in China.

"Regarding this news, there won't be a noticeable effect on Chinese stock markets," Wang said.

Concerns over tensions between the US and North Korea, which led to declines in global markets last week, have been less of a factor this week and have continued to wane as North Korea's leader delayed a decision on firing missiles toward Guam.

Financials were the best-performing component of the CSI300 index, with the banks sub-index rising 1.40 percent.

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