At open, Shanghai Composite Index up 0.05%, Shenzhen Component Index up 0.06%, ChiNext gains 0.02%

At open, Shanghai Composite Index up 0.05%, Shenzhen Component Index up 0.06%, ChiNext gains 0.02%

Asian markets started the week on a positive note, with the Shanghai Composite Index (SSEC) and Shenzhen Component Index (SZSE) both showing gains at the open. The SSEC rose by 0.05%, reaching 3,525.12 points, while the SZSE gained 0.06%, closing at 10,509.07 points. The ChiNext Index also saw a 0.02% increase, closing at 2,601.43 points [3].

The opening gains were driven by a combination of factors, including increased optimism about China's economic outlook and the extension of the U.S. trade tariff deadline. The Shanghai Composite Index's nominal increase of 0.02% to 3,473.13 points on Monday, as reported by Business Standard, reflects a cautious but optimistic market sentiment [2].

The market's performance was also influenced by the recent trend of increased shareholder returns among Chinese companies. Goldman Sachs analysts have noted a trend of increased dividends and buybacks, which is likely to continue and provide support to the market [1].

However, the market experienced significant intraday volatility, with the indices surging rapidly in the afternoon but pulling back due to insufficient follow-up buying. This resulted in mixed performance among the three major indices, with the Shenzhen Component Index and the ChiNext Index closing slightly down [3].

Looking ahead, the market's performance will be closely watched. If the indices can maintain their upward oscillation along the 5-day moving average and reclaim today's intraday high, it can be considered a regular turnover in the uptrend. Conversely, if the adjustment continues with increased volume, the probability of a return to consolidation will rise, necessitating greater attention to risk control.

References:
[1] https://www.investing.com/indices/shanghai-composite
[2] https://www.business-standard.com/markets/capital-market-news/china-s-shanghai-composite-index-edges-up-nominally-125070700746_1.html
[3] https://www.metal.com/en/newscontent/103412278