China market news wrap-up

Source:Global Times Published: 2020/1/14 19:33:40

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

A continued rally in US stocks on Monday failed to feed through to Chinese mainland shares on Tuesday. The benchmark Shanghai Composite Index lost 0.28 percent, or 8.75 points, to 3,106.82 percent. Both the Shenzhen Component Index and the ChiNext index retreated.

Semiconductor stocks which led Monday's rise across the board became a drag on the market on Tuesday, while the genetically modified and environmental protection engineering sectors posted a strong performance. Tesla concept stocks and lithium battery shares basked in Tesla's rally. The US electric vehicle maker soared 9.77 percent to finish at $524.86 on Monday, setting a fresh record.

With market capitalization of $94.6 billion by Monday's market close, Tesla is now the most valuable car company in US history. An upward spiral in Tesla shares is expected in the foreseeable future, contributing to the NASDAQ rally that hit a new high on Monday.

In another major move to wind down its trade tensions with China, the US has ended its designation of China as a currency manipulator ahead of the phase one trade deal signing in Washington, DC.

A mild correction on the Chinese mainland market is not a big concern. That's especially the case considering the US�?reversal of its decision to label China as a currency manipulator, which is expected to defuse one of the biggest fears affecting investor sentiment.

Worth noting, however, is the Dow's failure to hit a fresh high on Monday, which hints at a slight lack of morale that could signal the start of a transitory correction in US stocks.

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