Stocks recover as government soothes investors

Yuan Luhang
Chinese markets rebounded following swift action to contain a recent virus outbreak. Electronic components and material manufacturers were among biggest gainers.
Yuan Luhang

Major stock indexes closed higher on Wednesday as investors gained confidence from China’s quick response to a virus outbreak in Wuhan, capital of Hubei Province.

The benchmark Shanghai Composite Index edged up 0.28 percent to 3,060.75 points, rebounding from an earlier drop of 1.4 percent, while the smaller Shenzhen Component Index advanced 1.08 percent to 11,072.06 points. The blue chip CSI300 index climbed 0.43 percent to 4,131.93 points.

Following yesterday’s rout when only the medical sector posted gains, most shares recovered ground today after China came up with prompt response and openness, which have helped reassure investors concerned about the possible global fallout.

Turnover on the two major bourses improved to 707.9 billion yuan (US$102.28 billion).

Electronic components, material manufacturers and securities were among the biggest percentage gainers. Montage Technology Co Ltd, Anji Microelectronics Technology (Shanghai) Co Ltd and Shanghai Bright Power Semiconductor Co Ltd, which belong to the electronic component and semiconductor sectors, surged by the daily limit of 10 percent.

Precious metals and medicine shares suffered the biggest losses.

The STAR Market also posted a strong performance, with most shares increasing. Guangzhou Jet Bio-filtration Co Ltd, a newly listed company on the STAR board, surged by 223.59 percent to 53.36 yuan per share.

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