China-US Trade Thaw Unfreezes China's A-Shares
Liao Shumin
DATE:  Dec 04 2018
/ SOURCE:  yicai
China-US Trade Thaw Unfreezes China's A-Shares China-US Trade Thaw Unfreezes China's A-Shares

(Yicai Global) Dec. 3 -- Mainland and Hong Kong domestic stocks got a fillip today from apparent de-escalation of the China-US trade and tariff row and Beijing-based China International Capital's relaxation of the stock index futures trading restrictions over the weekend.

The three major indexes in A-share market opened steeply up, buoyed by the major positive news from the meeting between Chinese President Xi and US President Trump at the sidelines of the G-20 summit meeting of developed nations in Buenos Aires, Argentina over the weekend. 

The indexes still hovered near high levels though the afternoon session experienced a slight downward blip. A rare across-the-board stock rise finally has finally come to the A-share market after persistent declines.

The Shanghai Composite Index climbed 66.61 points to close at 2,654.80 points, with a turnover of CNY187.8 billion (USD27.3 billion). The Shenzhen Component Index went up 256.72 points or 3.34 percent to close at 7,938.47 points, with CNY237.2 million (USD34.4 million) swapped. The Growth Enterprise Index of up-and-coming shares increased 43.4 points or 3.26 percent to close at 1,372.79 points, churning over CNY69.6 billion.

Transport equipment services, science and technology, liquor and other sectors led the charge. No industry listed in the Shanghai or Shenzhen Stock bourses closed in the red today, and fewer than 50 shares fell.

The Hang Seng Index of the Hong Kong Exchange scaled up 2.55 percent to close at 27,182.04 points, with a turnover of HKD129.6 billion (USD16.6 billion). Gambling and tech stocks spearheaded the advance, with Sands China [HK:1928] and Tencent Holdings [HK:700] surging 11.96 percent and 4.1 percent, respectively.

Northbound funds staged large net incursions into the stock connect programs, with over CNY12.6 billion having come in as the closing bell rang. The Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect respectively recorded inflows of CNY8.9 billion (USD1.3 billion) and CNY3.7 billion.

In keeping with the resurgent stock markets, the exchange rates of onshore and offshore yuan against the US dollar both recovered to the 6.89 mark as of 3.15 p.m. today, nearly 700 points higher than the closing price of Nov. 30's night trading and the intra-day low.

Editor: Ben Armour

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Keywords:   Chinese Stock Market,Shanghai-Hong Kong Stock Connect