A-shares see just a slight increase
The A-share market closed with a slight gain on Wednesday, after profit-taking as authorities announced third-quarter macro data that reflected overall economic recovery, said analysts.
Encouraged by the positive trends reflected in the data released by the National Bureau of Statistics on Wednesday, the A-share market opened high. But it closed less than 0.1 percent higher than Tuesday after profit-taking in the afternoon.
The Shanghai Composite Index rose by 0.03 percent to 3,085.32 points, while the Shenzhen Component Index fell by 0.36 percent to 10,757.92 points.
We expect rebalancing to continue at a similar gradual pace in the next two years.”
Marie Diron, associate managing director at Moody’s Investors Service
Renewable-power companies led with gains of more than 3.4 percent across the sector. The share price of CECEP Wind Power Corp gained 10 percent to 10.62 yuan ($1.58), and the share price of Sichuan Minjiang Hydropower Co rose by 8 percent to 12.93 yuan.
Electronics and information companies saw the most losses. Shanghai Amarsoft Information Technology fell by 3.69 percent to 46.5 yuan, and Xiamen Prima Electronics Co lost 4.42 percent to close at 10.8 yuan per share.
“Economic rebalancing is continuing gradually, with the share of services in the total GDP rising to 52.8 percent, 13.3 (percentage points) higher than industry, and final consumption, public and private, contributing 71 percent to the headline GDP growth,” said Marie Diron, associate managing director at Moody’s Investors Service. “We expect rebalancing to continue at a similar gradual pace in the next two years.”
Wednesday’s A-share performance sent a signal that there is no solid rationale behind consistent downward performance in China’s stock market, because the overall picture is positive and investors have reason to be optimistic, although fluctuations remain, according to a research note from CITIC Securities.