Chinese stocks rise on Monday after Biden becomes the US president-elect
Published: Nov 09, 2020 10:35 AM

Investors check the A-share market at a securities brokerage in Jinhua, East China's Zhejiang Province in July. Photo: VCG

Chinese A-shares opened higher on Monday, with all three major indexes rising after US president-elect Joe Biden prepares to move into the White House. 

As one of the first batch of stock market reactions to the US presidential election results, China's Shanghai Composite Index opened 0.52 percent higher, and the Shenzhen Component Index gained 0.69 percent. The ChiNext stock market was up 0.76 percent as well. 

The valuation upon market opening has gotten a nudge from the US presidential election results, as a crucial victory in major swing state Pennsylvania put Joe Biden over the 270 Electoral College vote threshold to win the presidency. 

Industry analysts said the rise in the A-shares market is in line with market expectations, as Biden's victory is essentially secured, adding that technology firms that have been under the Trump administration's cosh can "breathe a sigh of relief."

In particular, the semiconductor sector soared on China's A-shares market Monday morning. Stocks of Huawei concept shares surged nearly 2 percent at 9:50 am on Monday, and prices of Huawei Hisilicon concept stocks gained 2.59 percent. 

The Chinese telecoms firm Huawei has been one of the main targets of the US government's attempts to contain China's high-tech development and advance of 5G. 

In addition, Hong Kong's Hang Seng index rose 1.73 percent on Monday, mainly driven by tech companies. 

Shares of telecom firm ZTE grew 5.5 percent on Monday morning on the Hong Kong stock market, while the Chinese chipmaker SMIC surged nearly 4 percent. 

The stock price of internet conglomerates Alibaba and Tencent rose 3 percent and 2.6 percent respectively. 

The stock rally was also seen in other Asian markets, with Japan's Nikkei 225 stock market index surging to a near 29-year high of 24,563 on Monday. South Korea's Kospi index edged up more than 0.9 percent. 

Global Times