Chinese stock markets divided on Friday for clearer signals

Zhu Shenshen
The benchmark Shanghai Composite Index closed up while the Shenzhen Component Index was down as investors told to be patient as they wait for policies to stimulate the economy.
Zhu Shenshen

China’s stock markets were divided on Friday as they waited for clear signals to decide direction.

The benchmark Shanghai Composite Index closed up 0.26 percent to 2,772.20 points. The Shenzhen Component Index was down 0.45 percent to 10,109.91 points.

Trading volume on the two bourses was 633.9 billion yuan (US$90.6 billion), compared with 642.5 billion yuan on Thursday. 

The GEM (China Growth Enterprise Market) index dropped 1.21 percent to 1,903.88 points, with many technology shares down.

Some investors gained in confidence after the G20 countries announced a US$5 trillion stimulus package to combat the COVID-19 pandemic. Others were worried about economic figures, including China’s industrial enterprise net profit plunge in the first two months.

Investors may need more patience to wait for specific policies to stimulate the Chinese economy, said Everbright Securities. 

Water conservancy, textile and wine shares advanced on Friday.

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