Quick Take: China Stocks Stabilize After Plummeting
Chinese shares stabilized after taking a tumble yesterday, quelling fears of a stock market correction.
The CSI 300 Index, which tracks 300 large- and mid-cap stocks on the Shanghai and Shenzhen stock exchanges fell by nearly 3% in its largest single-day drop in 17 months. At the end of trading Friday, it was up 0.04%.
The Shanghai stock market stabilized on Friday after experiencing its largest single-day drop of the year a day earlier.
The Shanghai Composite Index, which tracks all stocks traded on the city’s bourse, inched up 0.06% on Friday after shedding 2.3% on Thursday.
Similar to corrections seen in April-June 2016, December 2016-January 2017, as well as April-May 2017, the decline of stocks was triggered by an earnings season lull, rising sovereign bond yields and the year-end activities of institutional investors, said Xun Yugen from Haitong Securities.
Looking ahead, the medium-term trend remains positive, Xun said, explaining that corporate earnings will likely continue to improve, and both onshore and offshore institutional investors are going to snap up more equities. However, in the shorter run, investors will still be burdened by negative sentiment and policy uncertainty generated by the Central Economic Work Conference that will be held in mid-December.
China’s sovereign bond yields surpassing 4% has had a large impact on the market, said Ma Quansheng, chief strategist at Fullgoal Fund Management. In the last few years, rising sovereign bond yields have spread from the debt market to the stock market.
CITIC strategy research said the drop was mostly due to “market emotions” rather than any trend. It was driven by transactions rather than fundamentals.
Contact reporter Liu Xiao (email@example.com)
Oct 16 20:47
Oct 16 17:11
Oct 16 17:13
Oct 16 16:48
Oct 16 14:24
Oct 16 13:27
Oct 16 12:23
Oct 16 10:54
Oct 16 04:14
Oct 16 03:39
Oct 15 18:23
Oct 15 16:52
Oct 15 16:53
- 1Huawei’s Harmony OS Will Compete Globally Within 2 Years, Founder Says
- 2Investigators Examining Overweight Truck On Bridge During Fatal Collapse
- 3In Unusual Move, Huawei Offers ‘No Backdoor’ Deal to India Amid Security Concerns: Report
- 4In Depth: Tycoon’s Death Adds to Mounting Controversy Facing UCF Holdings
- 5Trump Promises to Deal with Chinese Students’ Visa Woes
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas