Stocks slide but market remains resilient
China’s main equity indexes declined on Tuesday but the A-share market has become more resilient as capital market reform and opening-up bears fruit and stocks are resilient enough to confront external uncertainties, regulators and market experts said.
The impact of Sino-US trade frictions has been generally controllable, said Yi Huiman, chairman of the China Securities Regulatory Commission.
As the market opens up, more foreign investors are involved in Chinese equities, diversifying the investor base. In addition, the upcoming science and technology innovation board will make the A-share market more inclusive to new economy enterprises, which will in turn bolster resilience, said Dong Dengxin, director of the finance and securities institute at Wuhan University.
At the close of the market, the Shanghai Composite Index shed 0.96 percent to end at 2,862.28 point. The Shenzhen Component Index lost 1.23 percent to 8,748.27 points. The blue chip CSI300 index was 0.92 percent lower at 3,598.47 points.
Turnover on the two major bourses totaled 422.4 billion yuan (US$61.1 billion), shrinking from 479.1 billion yuan in the previous trading session.
The 5G sector continued its strong performance as the promised commercialization of 5G in the near future bolstered confidence.
Shares of Nanjing Huamai Technology Co Ltd, Guomai Technology Co Ltd, and Zhongtong Guomai Communication Co Ltd all climbed by the daily cap.
Shares of securities and banks were also strong.
Shares of the agriculture, forestry, animal husbandry and fishery industries and logistics sector were among the biggest losers.