Chinese bourses outperform expectations despite virus

Source:Global Times Published: 2020/2/14 21:09:26

File Photo:Xinhua

Chinese mainland shares put in a stronger than expected performance on Friday, managing not to get crushed by rising downward pressure amid uncertainties surrounding the outbreak of the novel coronavirus and the resulting shadow over the economy, especially an array of battered sectors. 

The flagship Shanghai Composite Index finished up 0.38 percent, or 10.94 points, at 2,917.01 points. The Shenzhen Component Index jumped 0.48 per-cent, or 51.99 points, at 10,916.31 points, while the ChiNext Index edged up 0.22 percent, or 4.62 points, at 2,069.22 points.

The gains indicated a reversal of a decline across the board the previous day, although still more than half of the nearly 3,600 stocks traded on the main-land market ended in negative territory. 

Semiconductor shares continued their strength on Friday, albeit less impressive compared to the day before. The agricultural farming sector, one of the leading sectors on Thursday, lost steam, while biological products, chemical, securities, and pork shares were among the best performers. 

While there are concerns over the widely dispersed sectors that led Friday's gains, often considered a sign that a bull run or rebound might have run its course, the reversal still stoked speculation over a continued risky rally as hopes are growing for the epidemic prevention and containment.

In a sign, new confirmed cases of the disease outside of Central China's Hubei Province, the epicenter of the epidemic, declined for a tenth day in a row as of Thursday, official data showed.

In another encouraging sign, state-owned China Na-tional Biotech Group announced late Thursday that high-titer neutralizing antibodies have been identified in plasma taken from patients cured of the virus and the plasma has been used to treat 11 patients in critical condition, which has shown remarkable effects. 

The availability of more good news about an allout fight against the epidemic would certainly help in re-lieving anxieties about the impact of the virus on the global market, a boon for US stocks that broadly receded on Thursday. 

Global Times 

Posted in: ECONOMY

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