Stocks climb as US Se­nate calls for more say on tar­iffs

China Daily (USA) - - BUSINESS - By CAI XIAO and ZHOU LANXU Con­tact the writ­ers at caix­iao@chi­

Stocks on the Chinese main­land rose on Thurs­day, re­vers­ing Wed­nes­day’s slump, as the US Se­nate over­whelm­ingly passed a res­o­lu­tion cur­tail­ing US Pres­i­dent Don­ald Trump’s power to im­pose tar­iffs and China’s cen­tral bank set a stronger daily cur­rency fix­ing than traders had ex­pected.

The Shang­hai Com­pos­ite In­dex climbed 2.16 per­cent at the close to 2837.66 points, notch­ing up its se­cond 2 per­cent plus move this week.

The Shen­zhen Com­po­nent In­dex closed 2.77 per­cent higher at 9273.61 points. The ChiNext In­dex, which tracks China’s growth en­ter­prises board, jumped 3.30 per­cent to close at 1614.63 points.

At close, a to­tal of 3,243 A-shares ended up on Thurs­day, while 97 shares ended lower. In con­trast, just 358 stocks rose on Wed­nes­day.

Tech­nol­ogy stocks placed gains af­ter Chinese tele­coms equip­ment maker ZTE Corp signed a deal with the US Com­merce De­part­ment to re­sume do­ing busi­ness with US sup­pli­ers. ZTE soared by the daily limit of 10 per­cent as soon as trad­ing Thurs­day.

Be­sides ZTE, an­other eight com­mu­ni­ca­tion equip­ment stocks hit daily in­crease lim­its, in­clud­ing Eop­tolink Tech­nol­ogy Inc Ltd, T&S Com­mu­ni­ca­tions Co Ltd and Jiangsu Zhong­tian Tech­nol­ogy Co Ltd.

Elec­tron­ics, se­cu­ri­ties, phar­ma­ceu­ti­cal and liquor shares also saw strong gains.

“Thurs­day’s stock mar­ket rose as the US Se­nate took the first step to rein in the pres­i­dent’s abuse of trade au­thor­ity by us­ing na­tional se­cu­rity as jus­ti­fi­ca­tion to levy tar­iffs,” said started on Dong Dengxin, a fi­nance pro­fes­sor at the Wuhan Univer­sity of Sci­ence and Tech­nol­ogy.

In an 88-11 vote on Wed­nes­day, the US Se­nate ap­proved a sym­bolic mo­tion back­ing a role for Con­gress in re­quir­ing tar­iffs based on na­tional se­cu­rity, such as those Trump im­posed on steel and alu­minum im­ports and is con­tem­plat­ing do­ing the same for au­tos. The vote came a day af­ter the ad­min­is­tra­tion said it would im­pose a new round of 10 per­cent tar­iffs on $200 bil­lion worth of Chinese goods.

Liu Feng, chief econ­o­mist at China Galaxy Se­cu­ri­ties Co Ltd, said the trade con­flict is ex­pected to ease as the Trump ad­min­is­tra­tion would not want to bear the huge pres­sure from US cit­i­zens and large com­pa­nies.

The off­shore yuan traded at 6.6766 per dol­lar af­ter fall­ing to 6.7249 overnight. The Peo­ple’s Bank of China set the daily ref­er­ence rate at 6.6726, stronger than es­ti­mates com­piled by Bloomberg. The on­shore cur­rency climbed 0.2 per­cent.

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