Optimism on Sino-US talks buoys market

Source: Xinhua | 2019-01-10

the Shanghai market climbed yesterday on optimism about the outcome of trade talks between China and the United States and comments by the central government about further measures to stimulate spending.

The Shanghai Composite Index rose 0.71 percent after climbing more than 1.5 percent in the morning session, on turnover of 160.8 billion yuan (US$23.5 billion).

China and the US extended trade talks for an unscheduled third day before wrapping them up.

Investors took the extended talks as a positive signal the two parties are making progress on key trade issues.

Automakers were among yesterday’s gainers after head of the National Development and Reform Commission Ning Jizhe said in an interview with CCTV News that the commission would release further stimulus measures soon to boost spending on home appliances and cars.

Home appliances sales will come under further pressure from falling exports and a sluggish property market but growth would pick up in the second half, GF Securities wrote in a research note.

Great Wall Motor surged the daily limit of 10 percent after it signed a memorandum of understanding with Israel’s Mobileye to develop autonomous driving systems for China.