China market news wrap-up

Source:Global Times Published: 2020/1/13 20:13:40

Traders work at the New York Stock Exchange in New York, the United States, on Dec. 13, 2019. (Xinhua/Wang Ying)

Chinese mainland shares posted a strong performance on Monday, with the flagship Shanghai Composite Index closing up 0.75 percent, or 23.28 points, to hold above 3,100 percent. The Shenzhen Component Index and the ChiNext index both rallied during the day.

Semiconductor shares led Monday's rise, continuing an upward trend since November 2019. The revived uptick in semiconductor stocks also eased concerns over the sector's transitory correction in the past few weeks. 

The strength of technology stocks across the board is apparently fueling investor sentiment toward mainland stocks. This will in turn help in stoking optimistic sentiment toward US shares, which retreated slightly on Friday amid continued attempts to hit fresh highs. 

The Dow briefly broke above 29,000 points for the first time in history after Friday's opening before trending down to end the day in negative territory. Both the NASDAQ and S&P 500 finished the last trading day of the previous week in red, despite having both hit new highs in the morning session. 

The rally on Chinese markets on Monday is set to push US stocks toward new highs. With all eyes on the imminent signing of a phase one trade deal between the world's top two economies, the global equity market, the markets on the Chinese mainland and across the Pacific in particular, are on course to embrace a rally.  

While new data on tumbling vehicle sales in the China market in 2019 would augur ill for Ford's shares, it is less likely to cast a shadow over the overall market. This is especially the case considering that a rebound in Tesla-related stocks on the Chinese market might serve to put Tesla shares, nearing $500 per share, back on a growth track.

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