China's stock market loses ground on Tuesday

Tracy Li
Market decline dragged mainly by cyclicals and consumer sectors as over half of sectors underperform though companies related to 5G communications post strong gains.
Tracy Li

China’s stock market lost ground on Tuesday, dragged mainly by cyclicals and consumer sectors.

The benchmark Shanghai Composite Index dipped 0.54 percent to close at 3,379.04 after fluctuating throughout the day.

The smaller Shenzhen Component Index lost 0.53 percent to finish at around 13,970.21, while the ChiNext Index shed 1.05 percent to end its trading day on 2,813.00.

Combined turnover on the two bourses came to 859.7 billion yuan (US$131.6billion), compared with 881.0 billion yuan in the previous session.

Over half of sectors underperformed, with non-ferrous firms leading the declines. Electric equipment makers, mining and auto names were among the top losers.

Companies related to 5G communications, however, posted strong gains, following the news that China is to build more than 600,000 5G base stations next year.

Huaan Securities said a resurgence of the pandemic had brought fluctuations to the market, but would not change the trend of economic recovery.

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