Shanghai stocks rebound on China's firm stance on trade tension

Huang Yixuan
Shanghai stocks rebounded on Friday after China said the country would be forced to respond against the US tariffs on Chinese goods.
Huang Yixuan

Shanghai stocks bounced back on Friday after slumps in the previous two sessions, as China said it would be forced to respond against US tariffs on Chinese goods.

The benchmark Shanghai Composite Index picked up by 0.49 percent to close at 2,747.23 points, with higher turnover reaching 148.19 billion yuan (US$22.29 billion) compared with yesterday's 132.9 billion yuan.

The United States' 25-percent additional tariffs on Chinese products, worth US$34 billion, came into force on Friday.

"The Chinese side, having vowed not to fire the first shot, is forced to stage counter-attacks to protect the core national interests and interests of its people," a Ministry of Commerce spokesperson said after the tariffs were imposed.

The ministry also said they will continuously assess the impact on affected companies and take effective measures to offer them support.

Agricultural shares rose robustly with the news late on Thursday that Chinese President Xi Jinping has called for concerted action on the vitalization of rural areas. Jiangsu Provincial Agricultural Reclamation and Development Co grew 8.36 percent, Heilongjiang Agriculture Co advanced by 6.72 percent, and Xinjiang Talimu Agriculture Development Co was up 5.93 percent.

Electronic component companies also led the gains. Jilin Sino-Microelectronics Co grew sharply to hit the 10 percent daily limit, and Henan Thinker Automatic Equipment Co jumped by 9.46 percent.

Computer stocks such as Aisino Corporation and Suzhou Chunqiu Electronic Technology Co both edged up by over 4 percent.

Despite the rebound on Friday, the Shanghai Composite Index this week plunged 3.52 percent, ending the first seven weeks in a row of drops since 2011.

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