Chinese markets climb higher, led by financial sector

Yuan Luhang
Banks and insurance companies advanced on the day, although medical supply stocks were deflated by easing concerns about the coronavirus epidemic.
Yuan Luhang
Chinese markets climb higher, led by financial sector

Chinese stocks gained on Tuesday, despite losses among medical supply makers.

At the close of market hours, the benchmark Shanghai Composite Index was up 0.39 percent to 2,901.67 points, while the smaller Shenzhen Component Index edged up 0.37 percent to 10,768.63 points. The blue chip CSI300 Index advanced 0.93 percent to close at 3,952.46 points.

Trading volume on the two major bourses totaled 786.1 billion yuan (US$112.6 billion), compared with the previous session’s 885.8 billion yuan.

Banking and insurance shares led the gains, with all 35 banks and 7 insurance companies advancing on the day.

Glass-ceramic, steel, liquor and coal mining shares also posted strong performances.

Stocks related to epidemic control and prevention slumped by an average of 3.84 percent, as supplies such as masks improved and epidemic control measures take effect.

By the end of February, about 200 million masks will be available on the market, according to Hua Chuang Securities.

Shares of nine firms producing masks dropped by the daily limit of ten percent. Shenzhen Glory Medical Co Ltd, Allmed Medical Products Co Ltd, Zhende Medical Co Ltd and Xinlong Holding (Group) Company Ltd all slumped by the daily cap.

Besides mask shares, disinfectant makers also posted sharp falls, with 13 out of 15 related shares suffering losses.

Guosheng Securities noted that investors are coming to their senses now that concerns about the coronavirus epidemic are starting to ease.

On the SSE STAR Market, 17 out of 80 listed companies saw their share prices rise. Medical firms took the biggest hits.

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