China’s A-share markets make quick recovery

Source: Xinhua | 2019-05-09

China’s A-share markets recovered yesterday after a Black Monday with most sectors posting gains.

Consumption and agriculture led the recovery.

The benchmark Shanghai Composite Index rose by 0.69 percent, or 19.93 points, to finish at 2,926.39.

The Shenzhen Component Index increased 1.63 percent to end at 9,089.46 points, while the ChiNext Index was up 0.62 percent to finish at 1,504.16.

The Shanghai index rebounded more than 1 percent during morning trading before the gains were wiped out in the afternoon.

The combined turnover of the two bourses was 538 billion yuan (US$79.39 billion).

Gains were seen across the board, with consumption and agriculture companies posting strong performances.

Shares of Gansu Dunhuang Seed Group Co Ltd jumped by the daily maximum 10 percent to 4.69 yuan.

Market sentiment was lifted on the news that Chinese Vice Premier Liu He is expected to join a delegation in Washington for a new round of Sino-US trade talks tomorrow and on Friday at the invitation of the US side, according to an announcement made by the Ministry of Commerce.

Yang Ouwen, a senior analyst at Chuancai Securities, told Caixin.com that the recent volatility in A-shares was primarily triggered by pessimism about trade relations between the world’s two largest economies.

She advised investors to follow the progress of the trade talks and focus on infrastructure-related companies, as the second quarter will see a peak in infrastructure investment and railway construction, and water conservancy projects are expected to benefit from the upstream and downstream industrial chains.