Telecoms lead market slide

Hu Yumo
Investors locked in profits in shares related to the new 5G mobile network ahead of New Year holidays.
Hu Yumo

Shanghai stocks fell yesterday, led by declines of telecommunication and consumer shares as investor sentiment remained weak.

The Shanghai Composite Index edged down 0.26 percent to close at 2,498.29 points.

The telecoms sector was the biggest loser, shedding 1.85 percent. Consumer shares fell 1.18 percent and brokerages retreated 1.07 percent, according to Chinese financial data provider Wind Information Co.

Market sentiment showed no improvement ahead of  the three-day New Year's Day holiday from Sunday.

Qin Hong, an analyst with the Jingbailing Consulting firm, said stocks fell mainly due to investors locking in profits in the 5G sector.

Despite a weak overall performance this week, 1,230 companies listed on the country's A-share market have released annual profitability estimates as of December 25, with over 64 percent expecting positive financial results, according to data from Wind Information.

Wuhan Bester Group Telecom Co Ltd dropped 5.75 percent to 22.79 yuan (US$3.30) and Hangzhou Freely Communication Co Ltd declined 3.45 percent to 25.78 yuan.

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