Stocks steady as US tariffs take effect
Chinese mainland stocks rose on Friday as investors had expected the Trump administration’s 25 percent tariffs on $34 billion of Chinese imports to take effect.
The benchmark Shanghai Composite Index plunged 1.52 percent at one point in the morning, but climbed by 0.49 percent overall to close at 2747.23 points on Friday. The smaller Shenzhen Component Index closed 0.55 percent higher at 8911.34 points.
The agricultural sector, mainly planting and agricultural machinery companies, posted the strongest gains on Friday.
Chips and software companies also led the rise amid the trend of reducing industrial dependence on the US due to the trade frictions. Other sectors that closed higher were also some of those covered by the new US tariffs, such as new materials, communications equipment and aerospace.
Hong Hao, chief strategist at BOCOM International Holdings Co, said the A-share market performed calmly, in accordance with expectations that the US’ trade bullying tactics of slapping new tariffs on Chinese goods would come into force on Friday. According to Hong, the US aviation, agriculture and semiconductor sectors will be most negatively affected by the arising trade conflict between the two nations.