China Market gains ground as trade talks resume

The Mainland China equity market closed three-week high on Tuesday, 30 July 2019, as the start of in-person trade talks between China and the United States caused to turn a little optimistic progress can be made in resolving their deep differences. At closing bell the benchmark Shanghai Composite Index advanced 0.4%, or 11.33 points, to 2,952.34. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 0.45%, or 7.12 points, to 1,582.07. The blue-chip CSI300 index rose 0.42%, or 16.05 points, to 3,870.32.

The US-China trade talks resume in Shanghai today, around three months after similar talks collapsed. While the market's expectations seem to be relatively low, any progress would likely be well received by the market.

 

Shares of insurers gained, with China Life (601628 CH) up 1.4%, after it said its first half net profit probably increased between 115% and 135%, from a year earlier. New China Life Insurance (601336 CH) rose 2.8% after first half profit growth alert in which it said it expects its bottom line to rise by about 80%. China Pacific Insurance (601601 CH) rose 2.5%.

Shares of brokerages also performed well. Citic Securities (600030 CH) was up 1% and Hongta Securities (602136 CH) rose 0.4%.

Shares of China's pig-linked companies declined, as a fresh report warns the pig herd in the world's largest pork market could by the end of 2019 be half of what it was a year earlier due to the deadly African swine fever epidemic. Chuying Agro-pastoral Group (002477 CH) fell 4.9%, Shandong Delisi Food (002330 CH) dropped 2%, and Guangdong Guanghong Holdings (000529 CH) lost 2%.

Among individual stocks, Focus Media Information Technology (002027 CH) surged 7.6%, as investors appeared to be relieved by its announcement that its net profit for the first half dropped 76.8%, in line with its own expectation announced in April.

CURRENCY NEWS: China yuan firmed against greenback on Tuesday, despite softer midpoint fixing by central bank. Before the market open, the PBOC set the midpoint of the yuan's daily trading band at 6.8862 per dollar, 0.06% weaker than the previous fix of 6.8821. In the spot market, onshore yuan rose 0.07% to 6.8877 per dollar.

Powered by Capital Market - Live News