Disappointing corporate results drag stocks down

Source: Xinhua | 2019-01-30

Chinese stock markets continued Monday’s losses yesterday.

With worse-than-expected preliminary results of listed firms, the markets saw broad-based losses.

The benchmark Shanghai Composite Index slipped 0.11 percent, or 2.73 points, to close at 2,594.25, dragged down by communications and media stocks. Shanghai Xinhua Media Co plunged by the daily limit of 10 percent to close at 5.27 yuan (US$0.78).

January marks the pre-disclosure period for company annual reports — the release of preliminary results ahead of a formal filings with exchange authorities. And the disappointing results so far are expected to trigger more price fluctuations. This, along with the trade issue, is expected to influence market sentiment in the near-term, analysts said.

A Chinese delegation led by Vice Premier Liu He arrived in Washington on Monday for economic and trade negotiations, the official Xinhua news agency reported yesterday.

And Xiao Yuanqi, spokesman for the China Banking and Insurance Regulatory Commission, on Monday announced the regulator would encourage insurance companies to increase their holdings of stocks and bonds from quality listed companies by using long-term account funds.

The announcement was seen as a positive boost for stabilizing the market.