Shanghai stocks end four-day loss as investors turn upbeat over China-US talks
Shanghai stocks ended a four-day loss on Tuesday, led by gains in high-tech firms and defense stocks as investors turned upbeat on news that China and the US were trying their best to prevent a trade war.
The Shanghai Composite Index gained 1.05 percent to 3,166.65 points, “with investor sentiment being upbeat on the economic outlook after news that the Chinese and US officials were negotiating to prevent an all-out trade war,” analysts said.
Premier Li Keqiang also called for a rational and earnest attitude when addressing the problem of China-US trade imbalance on Monday.
“Fears over tightening trade frictions started to subside,” said Yang Hai, senior strategic analyst at Kaiyuan Securities, adding that this change in sentiment might help the stock market to rally in the following days.
Shanghai-listed computer science companies surged, with software developer Hundsun Technologies Inc jumping by the daily limit of 10 percent to 56.53 yuan (US$9.01), while electronic equipment producer Dawning Information Industry Co surged 9.07 percent to 109.29 yuan.
Meanwhile defense stocks were favored by investors who remained cautious over the outcome of the China-US negotiations, Huarong Securities said in a report.
CSSC Offshore & Marine Engineering (Group) Co, a defense equipment producer under China State Shipbuilding Corp, surged 10 percent to 22.51 yuan while Avic Shenyang Aircraft Co gained 4.14 percent to 33.44 yuan.