New | China markets claw back losses as materials sector leads recovery
Weak China trade numbers prove a drag on opening sentiment but market recovers quickly with A-share stocks finishing almost flat
Deep lows and near misses characterised the first trading day of the Year of the Monkey for mainland Chinese markets, as A-share stocks clawed back to almost finish flat.
Just after open Shanghai and Shenzhen were down 2.84 and 3.25 per cent, respectively, but by the close of trading both had almost regained all their lost value.
The Shenzhen Composite Index closed down just 0.04 per cent, finishing at 1,750.02, after briefly trading in positive territory during the afternoon.
In Shanghai, markets ended slightly down at 2746.20, 0.63 per cent lower compared to their pre-Lunar New Year values, while the blue-chip China Securities Index followed suit by closing at 2,946.71, down 0.58 per cent.
Ample Capital Asset Management director Alex Wong said a weak set of China trade data had damaged opening sentiment but it recovered quickly.
“They shook it off probably because I think the renminbi will stabilise now the easing US dollar has softened the depreciation pressure on the [Chinese currency],” he said.
