China stocks rise as investors snapped up shares hit by recent heavy losses
China stocks rose on Tuesday as investors snapped up shares hit by recent heavy losses.
China stocks rose on Tuesday as investors snapped up shares hit by recent heavy losses, but an escalating Sino-U.S. trade war and worries over the prospect for domestic growth are likely to continue to dampen sentiment.
At midday, the Shanghai Composite index was up 38.55 points or 1.43 percent at 2,743.71. China's blue-chip CSI300 index was up 1.53 percent, with its financial sector sub-index higher by 1.54 percent, the consumer staples sector up 1.24 percent, the real estate index up 1.81 percent and healthcare sub-index up 1.07 percent.
The CSI300 and Shanghai Composite indexes had each fallen 1.3 percent on Monday, following their worst weekly performances since February last week. The official China Daily on Tuesday described as "wishful thinking" U.S. President Donald Trump's belief that a fall in Chinese stocks was a sign of his winning the trade war and an example of his "ability to elasticise the truth."
A Reuters poll showed that the market expects July data to show new loans as staying relatively solid, and broad money supply growth to have picked up, as the central bank pumps out cash to encourage lending and support growth. Some steel mills in Hebei, China's top steelmaking province, have been ordered to curb operations due to power shortages in the region, industrial sources said. Chinese H-shares listed in Hong Kong rose 1.07 percent at 10,816.52 while the Hang Seng Index was up 0.96 percent at 28,087.02.
Real estate firms gained in Hong Kong, with the Hang Seng's property index rising 2 percent. Hong Kong property shares rose after Country Garden Holdings forecast solid first-half performance. Its shares gained 4.22 percent The smaller Shenzhen index was up 1.41 percent and the start-up board ChiNext Composite index was higher by 1.89 percent. Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.38 percent while Japan's Nikkei index was up 0.60 percent.
The yuan was quoted at 6.854 per U.S. dollar, 0.03 percent weaker than the previous close of 6.8519. The largest percentage gainers in the main Shanghai Composite index were Anhui Liuguo Chemical Co Ltd up 10.13 percent, followed by Ningbo Construction Co Ltd gaining 10.13 percent and Jiangsu Chengxing Phosph-Chemical Co Ltd up by 10.12 percent.
The largest percentage losses in the Shanghai index were Hubei Sanxia New Building Materials Co Ltd down 10.04 percent, followed by Shanghai Electric Group Co Ltd losing 9.94 percent and Ningbo Joyson Electronic Corp down by 8.65 percent. So far this year, the Shanghai stock index is down -18.2 percent, while China's H-share index is down 8.6 percent. Shanghai stocks have declined 5.95 percent this month.
The top gainers among H-shares were China Resources Land Ltd up 3.72 percent, followed by PetroChina Co Ltd gaining 3.16 percent and CRRC Corp Ltd up by 3.26 percent. The three biggest H-shares percentage decliners were Huaneng Power International Inc which has fallen 2.35 percent, PICC Property and Casualty Co Ltd which has lost 1.14 percent and China Telecom Corp Ltd down by 0.55 percent.
About 7.69 billion shares have traded so far on the Shanghai exchange, roughly 55.8 percent of the market's 30-day moving average of 13.76 billion shares a day. The volume traded was 12.98 billion as of the last full trading day. As of 04:00 GMT, China's A-shares were trading at a premium of 16.72 percent over the Hong Kong-listed H-shares. The Shanghai stock index is below its 50-day moving average and below its 200-day moving average.
The price-to-earnings ratio of the Shanghai index was 11.85 as of the last full trading day while the dividend yield was 2.7 percent. So far this week, the market capitalization of the Shanghai stock index has fallen by 1.24 percent to 28.72 trillion yuan. In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 2.6 percent while the IT sector rose 0.5 percent. The top gainer on Hang Seng was Country Garden Holdings Co Ltd up 4.22 percent, while the biggest loser was WH Group Ltd which was down 0.98 percent.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)