Chinese shares surge more than 3 percent as trade talks in Beijing conclude
- March 31, 2019
- Posted by: consortiumconsultancy
- Category: Uncategorized
- Shares in China surged more than 3 percent on Friday.
- The Chinese markets have been on a tear in 2019 since their slump in 2018.
- The Shanghai composite has jumped almost 24 percent since the end of 2018, while the Shenzhen component has soared about 36.8 percent in the same period.
Shares in China surged on Friday as U.S.-China trade negotiations in Beijing this week concluded.
By the market close, the Shanghai composite had jumped 3.2 percent to 3,090.76, while the Shenzhen component surged 3.77 percent to 9,906.86. The Shenzhen composite also added 3.38 percent to 1,695.14.
The CSI300 index, which tracks the largest shares on the mainland, also saw major gains of 3.86 percent to finish at 3,872.34.
Chinese markets have been on a tear in 2019 since their slump in 2018. The Shanghai composite has jumped almost 24 percent since the end of 2018, while the Shenzhen component has soared about 36.8 percent in the same period.
“The A-share market has been doing very well in the first quarter and I think it will continue to outperform … the overall market,” Dickie Wong, executive director of research at Kingston Securities, told CNBC’s “Street Signs” on Friday, referring to yuan-denominated stocks traded on the mainland.
Global index provider MSCI also announced in February that it would quadruple the weighting of China A-shares in its global benchmarks later this year, potentially drawing tens of billions of fresh foreign inflows to the world’s second-largest economy.
The surge in the mainland Chinese stocks came as high level trade negotiations between the U.S. and China resumed in Beijing this week, with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer present for the first face-to-face meetings between the two sides in weeks.
The next round of talks is scheduled to take place in Washington in April.
The trade standoff between the two economic powerhouses has been closely watched by investors, amid rising concerns of an economic slowdown as the bond market recently began showing signs that a recession could come soon.