China stocks edge up on positive expectation

Yuan Luhang
China stocks edge up as supportive policies are expected to prop up the  economy amid external uncertainties
Yuan Luhang

China stocks edged up as supportive policies were expected to prop up the country’s economy amid external uncertainties.

At the close of market hours, the benchmark Shanghai Composite Index was up 0.58 percent to end at 2,955.71 points. The smaller Shenzhen Component Index added 0.37 percent to close at 9,293.32 points, while the CSI300 index rose 0.45 percent to 3,743.96 points.

Turnover on the two major bourses totaled 512.8 billion yuan (US$ 74.5 billion), compared to the 512.7 billion yuan in the previous trading session.

Shares in industrial sectors posted more gains than declines. Shares of nonferrous metal led the gains. Shares in the agriculture industry continued their strong performance. The communications industry performed less well.

Shares in Beijing Jingyuntong Technology Co Ltd and Ningbo Yunsheng Co Ltd jumped by the daily cap of 10 percent.

Shares in Huawei suppliers took a nosedive, after the Trump administration hit the telecoms giant with severe sanctions on Wednesday.

The rise in the stock market after weak April activity data indicated that expectations are more important than actual readings, Northeast Securities noted in report.

Liquidity could be loosened given the downside pressure on the economy, the brokerage added.

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