Chinese stocks rose on Friday, with the Shanghai Composite Index up 1.05% to 3,546.5 points and the Shenzhen Component Index up 0.94% to 10,731.19 points at midday.
Chinese stocks experienced a notable uptick on Friday, with the Shanghai Composite Index rising 1.05% to 3,546.5 points and the Shenzhen Component Index up 0.94% to 10,731.19 points at midday. The rally was driven by several key factors, including positive inflation data and investor anticipation of trade data due over the weekend.
The Shanghai Composite Index, which opened at 3,511.37 points, ended the day at 3,560 points, marking a 0.8% increase. Similarly, the Shenzhen Component Index, which opened at 10,637.45 points, closed at 10,700 points, representing a 0.6% gain [1].
The recent gains can be attributed to several factors. First, the release of key inflation data showed that consumer prices in China edged up 0.1% year-over-year in June, marking the first positive reading in five months. This indicates tentative signs of stabilizing demand [2]. Additionally, investors are eagerly awaiting the release of trade data over the weekend, which could offer fresh insights into the evolving US-China trade dynamics [3].
Despite the latest trade escalations from Washington, such as a 35% tariff on Canadian imports starting August 1 and plans for blanket tariffs of 15% to 20% on most other trading partners, investors appear to be optimistic about the potential for further policy stimulus and attractive valuations [1].
Notable gainers included China Northern Rare Earth (+10%), Wuxi AppTec (+9.8%), and China CSSC Holdings (+8.1%). Among other significant performers were Foxconn Industrial (up 1.2%), Contemporary Amperex (3.3%), and Zhongji Innolight (1.6%) [1][3].
Both the Shanghai and Shenzhen indexes are on track to post their third consecutive weekly gain, reflecting the overall bullish sentiment in the market.
References:
[1] https://www.tradingview.com/news/te_news:469419:0-china-stocks-climb-ahead-of-key-trade-data/
[2] https://www.chinadailyhk.com/article/615673
[3] https://www.tradingview.com/news/te_news:468787:0-china-stocks-rise-as-consumer-inflation-turns-positive/
Comments
No comments yet