Another mixed day for stocks

Cao Qian
Shanghai up, Shenzhen and ChiNet down. Consumer stocks boosted by tax cuts to encourage consumption.
Cao Qian

Chinese stocks closed mixed again on Wednesday with the three major indexes continuing to correct.

The Shanghai Composite Index edged up 0.07 percent to 3,241.93 points, and the Shenzhen Component Index slipped 0.01 percent to finish at 10,435.08 points. The ChiNext fell 0.83 percent to 1,726.64 points.

Turnover on the Shanghai and Shenzhen bourses rebounded moderately to 899 billion yuan (US$133.76 billion) from Tuesday's 840 billion yuan.

Consumption-related industries including pharmaceuticals, food and beverage and liquor firms were among the day's major gainers as the government cuts taxes to boost consumer spending.

Jiangsu Lianhuan Pharmaceutical Co, Hunan Jiudian Pharmaceutical Co and Chongqing Fuan Pharmaceutical Co were among the stocks that hit the 10-percent daily cap. Luzhou Laojiao and Kweichow Moutai Co jumped 5.23 percent and 4.75 percent — with the latter staying above 900 yuan for the third day.

But automakers recorded the strongest performance, with the sector gaining 3.58 percent. Tianjin Faw Xiali Automobile Co, Anhui Jianghuai Automobile Co and Baic Bluepark New Energy Technology Co all rose by the daily cap.

Everbright Securities says market momentum is expected to remain at the current high level with optimism among investors continuing for some time.

Sectors including food and beverage, pharmaceuticals, banks and insurers as well as real estate developers, among others, might offer some good opportunities.

 

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