Stocks flat on Sino-US trade talks expectations

Shanghai stocks closed generally flat on Friday, remaining to close beyond the 3,100 point level, with hopes and concerns about the new round of Sino-US trade talks next week.

The benchmark Shanghai Composite Index edged up 0.09 percent to 3,104.15 points. The smaller Shenzhen Component Index also rose slightly by 0.1 percent to 9,879.22 points, while the blue chip CSI300 index ended 0.08 percent lower at 3,833.8 points.

According to the Ministry of Commerce, a trade delegation from the United States will visit China from March 28 to 29 for the eighth round of Sino-US trade talk, and the ninth round will happen in early April in the US.

A positive trade agreement can have a positive impact on China's macro-economy in terms of both sentiment and policy. Meanwhile, many key issues in trade talks such as tariffs and intellectual property rights are closely related to many sectors including the consumer electronics industry and technology industry, indicating uncertainties for many industrial chains in China, Chuancai Securities said in a note.

The catering and tourism sector led the rise, after the General Office of the State Council announced to adjust its holiday arrangements for the Labour Day in May, creating a four-day break starting from May 1, while people will have to work on April 28 and May 5, both Sundays.

UTour Group Co and Xi'an Tourism Co both rose by the daily limit of 10 percent, and Zhang Jia Jie Tourism Group Co also jumped 8.21 percent.

Stocks related to venture capital and the industrial hemp industry were also among the biggest gainers.

Agricultural shares, however, led the declines, with Xinjiang Talimu Agriculture Development Co losing the daily maximum of 10 percent.

Financial industries, including the insurance sector and brokerages, also fell.

For the week, the Shanghai Composite Index extended the rise to post a weekly gain of 2.73 percent, comparing with the 1.75 percent increase in the previous week. However, the total turnover in the Shanghai bourse shrank to 1.86 trillion yuan from 2.04 trillion yuan last week.