China markets wrap-up

Source:Global Times Published: 2020/2/25 21:48:40

 Photo: IC



Chinese mainland share posted an impressive performance on Tuesday, surviving a bloodbath on the global stock markets over fears of a surge in coronavirus infections outside the mainland. 

Mainland stocks moved in a V-shaped fashion throughout the day, recording wild swings between heavy losses and notable gains. 

As of market close, the flagship Shanghai Composite Index edged down 0.6 percent, or 18.18 points, to stay above 3,000 points. Both the Shenzhen Component Index and the ChiNext index logged gains.

More than 1,100 out of 3,700-plus stocks traded on the mainland equity markets ended up, and trading in mainland shares soared past 1.4 trillion yuan ($198.97 billion), the fifth consecutive trading day to see transactions of more than 1 trillion yuan.

More than 140 stocks posted a surge up to their daily limit. Face masks, 5G, semiconductors, auto and autonomous-driving shares led Tuesday's gains. 

The V-shaped gain as a whole, points to the unusual strength of A shares after global stock markets were mired in a brutal free-fall. 

The Dow suffered a slump of 3.56 percent, or 1,031.61 points, to close Monday in darkness. The NASDAQ and S&P 500 also both took a heavy hit from concerns over the spread of the deadly disease outside the Chinese mainland.  

There are more signs of slowing of the virus spread in the mainland, with a host of provinces and cities reporting no new coronavirus cases.

While it remains to be seen as to whether China's epidemic control playbook can be successfully copied in other parts of the world, a bull run in the nation's ChiNext market in particular, buoyed by a flurry of supportive policy announcements on both fiscal and monetary fronts, will underpin global investor sentiment.

It seems that the US market that has long served the role of helmsman in the global equity market might cede its dominance to A shares in 2020, as measured by yearly performance, in a year that has gotten off to a tough start. 



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