Shanghai market sentiment on the up
Shanghai stocks rose on Tuesday as market sentiment was lifted after China’s Ministry of Industry and Information said it will give more support to the industrial sector.
The Shanghai Composite Index rose 0.45 percent to end at 2,899.94 points.
Shares of telecommunication firms, electronics enterprises and automobile companies are among the biggest gainers on Tuesday.
The ministry said during a press conference on Tuesday that the country will further promote high-quality development of manufacturing sector, with enhancing innovation capability, industrial structure optimization and upgrade, support small- and medium-sized enterprises and other measures.
UBS Securities said in a note today that the company is “cautiously constructive on the A-share market and continue to prefer consumer-related sectors including food & beverage, home appliances, duty-free operators and airports due to their relatively resilient earnings growth.”
UBS Securities expects large caps to continue to outperform small caps unless policy easing is stronger than expected or China and the US reach a better-than-expected trade agreement.
Shares related to 5G technology also rise today after the Ministry of Industry and Information Technology said that the country will deploy 5G in big cities this year. The ministry also said in the next step, China will promote 5G technology in rural areas as well.
Gigadevice Semiconductor Inc added 5.36 percent to 100.9 yuan(US$14.7) and Guangdong Super Telecom Co Ltd rose 5.54 percent to 18.48 yuan.