China Market rises on hope over US-China relations

The Mainland China equity market closed higher on Tuesday, 24 September 2019, as risk sentiments underpinned on a sliver of hope over US-China relations after US Treasury Secretary Steven Mnuchin said US-China trade talks will resume in two weeks with himself, US Trade Representative Robert Lighthizer and Chinese Vice-Premier Liu He. At closing bell, the benchmark Shanghai Composite Index inclined 0.28%, or 8.26 points, to 2,985.34. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.33%, or 5.50 points, to 1,665.56. The blue-chip CSI300 index added 0.27%, or 10.42 points, to 3,901.08.

Chinese investors are optimistic about the prospects of more fiscal stimulus, after Ning Jizhe, a vice head of the state planner, told a press conference in Beijing that China will step up efforts to stabilise economic growth.

US Treasury Secretary Steven Mnuchin said US-China trade talks will resume in two weeks with himself, US Trade Representative Robert Lighthizer and Chinese Vice-Premier Liu He.

The world's largest distiller, Kweichow Moutai, closed at a fresh all-time high of 1,184 yuan as investors soaked up the stock ahead of the upcoming week-long National Day holiday.

Shares of health care companies declined after China released which pharmaceutical companies won bids in its drug bulk-buying procurement plan, causing huge sell-offs among some of the pharmaceutical sector stocks that saw huge cuts in the drug prices. Shenzhen Salubris Pharmaceuticals fell almost 10% after it failed to win a bid. Huadong Medicine lost 3.2% and Sinopharm Group dropped 2.4%.

Powered by Capital Market - Live News