Chinese market ends higher amid external uncertaintiesDevdiscourse News Desk | Beijing | Updated: 16-05-2019 19:08 IST | Created: 16-05-2019 13:03 IST
China stocks ended higher on Thursday, extending a strong rally in the previous session, as Beijing is expected to roll out more stimulus to shore up the world's second-largest economy amid external uncertainties. ** The blue-chip CSI300 index rose 0.5%, to 3,743.96, while the Shanghai Composite Index closed up 0.6% at 2,955.71. The strength in the stock market after weak April activity data indicated that the expectations of economic data and policy support are more important than actual readings, Northeast Securities said in a note. The liquidity conditions could be loosened given the downside pressure on the economy, the brokerage added.
Shares of Huawei suppliers were dealt a heavy blow, after the Trump administration hit the Chinese telecoms giant with severe sanctions on Wednesday, adding another incendiary element to the U.S.-China trade dispute just as Treasury Secretary Steven Mnuchin said he would visit China soon for more talks. Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.12 %, while Japan's Nikkei index closed down 0.59%.
At 07:12 GMT, the yuan was quoted at 6.8772 per U.S. dollar, 0.01% weaker than the previous close. The largest percentage gainers in the main Shanghai Composite index were Beijing Jingyuntong Technology Co Ltd, up 10.14 %, followed by Xinjiang Tianfu Energy Co Ltd, gaining 10.08% and Jiangsu Yulong Steel Pipe Co Ltd, up by 10.08%. The largest percentage losers in the Shanghai index were Anhui Quanchai Engine Co Ltd down 7.72%, followed by Fujian Apex Software Co Ltd losing 6.41% and Yunnan Metropolitan Real Estate Development Co Ltd down by 5.9%.
So far this year, the Shanghai stock index is up 18.5% and the CSI300 has risen 24.4%, while China's H-share index listed in Hong Kong is up 7.3%. Shanghai stocks have declined 3.98% this month. About 24.84 billion shares were traded on the Shanghai exchange, roughly 76.0% of the market's 30-day moving average of 32.69 billion shares a day. The volume in the previous trading session was 23.05 billion. As of 07:13 GMT, China's A-shares were trading at a premium of 24.19% over the Hong Kong-listed H-shares.