China market wrap-up

Source:Global Times Published: 2020/2/13 19:41:59

Investors at a stock exchange in Nanjing, capital of East China's Jiangsu Province. Photo: VCG

The benchmark Shanghai Composite Index shed 0.71 percent, or 20.83 points, to finish at 2,906.07 points on Thursday, snapping a rare seven-day winning streak, an indication that China's mainland markets might be in for a pause in the risk rally after an impressive rebound.

The Shenzhen Component Index lost 0.7 percent, or 76.48 points, to 10,864.32 points, while the ChiNext index fell 0.99 percent, or 20.68 points, to close at 2,064.6 points. 

Semiconductors and agriculture and farming shares posted notable gains, defying an overall decline. Also noteworthy is medical waste disposal stocks which staged an impressive comeback in the afternoon session, with the sector soaring nearly 5 percent.

Nonetheless, overall there were signs of reduced vibrancy, as only 800-plus out of more than 3,700 stocks closed up. 

While the number of new confirmed infections outside Central China's Hubei Province, the epicenter of the novel coronavirus, declined for a ninth day in a row as of Wednesday, Hubei reported 14,840 new confirmed cases and an additional 242 deaths on Wednesday, a sharp spike from the previous day's numbers, as the country announced a reshuffle of top officials in Hubei on Thursday. 

With multiple sectors, especially the hospitality, tourism and manufacturing industries, still grappling to resume operations, the jobs market is under pressure to remain resilient. On the side of listed firms, many stand to take a big hit from the virus outbreak in terms of operations and earnings. These anxieties are expected to cloud the market in the coming sessions. 

While US stocks have proven particularly strong so far this year, repeatedly hitting new records despite the trade tensions with China and the virus onslaught, lingering uncertainty from across the Pacific would inevitably be fed through the US market, as investors are increasingly sensitive about whether US stocks are going to peak amid a rather gloomy global economic setting. 


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