Cyclicals shine during lackluster day for Chinese stocks
Chinese shares dipped on Tuesday, while cyclical firms continued gaining.
At close, the benchmark Shanghai Composite Index slipped 0.34 percent to 3,402.82 points. The Shenzhen Component Index edged down 0.38 percent to 13,902.54 points. The bluechip CSI300 shed 0.61 percent to 4,974.29 points.
Most sectors lost with losers outnumbering gainers by 1,061 to 667 on the Shanghai bourse, and 1,326 to 929 on Shenzhen.
Cyclical firms bucked the day's downturn. Cyclical companies are those whose success is heavily determined by the economy, represented by steel, coal, petroleum, non-ferrous metals and automotive industries.
The top gainers of the day were the petroleum, non-ferrous metals, steel and material sectors.
Analysts also continue to recommend cyclical firms with low valuations on hopes of a coronavirus vaccine-led recovery.
In the short term, due to the impact of bond defaults and tight liquidity conditions, investors should pay attention to stocks with solid fundamentals, low valuations and high dividend yields, Industrial Securities said in a report.