Stocks rebound as market awaits next tariff moves
Chinese mainland stocks rose on Monday despite heightened trade tensions between China and the US, after each imposed major tariffs on the others’ goods last week and as investors nervously await more policy action.
The Shanghai Composite Index closed 2.47 percent higher to 2,815.11 points, while the bluechip CSI300 Index was up 2.80 percent to end at 3,459.18 points.
Stocks have tumbled about 17 percent since the start of the year and policymakers have tried to sooth investors by reassurances of solid economic fundamentals.
In an online post late on Sunday, the Shanghai Stock Exchange exhorted investors to buy.
“Currently, the general level of valuations of Shanghai-listed companies is relatively low, presenting obvious value investment opportunities,” it said.
“Indeed, several Shanghai-listed companies have disclosed plans for buy-backs for stake increases by shareholders, showing that the companies and shareholders are adamantly confident of listed companies’ operations, profitability and growth prospects.”
Chinese markets fell in the run-up to Friday’s imposition of tariffs on $34 billion worth of Chinese goods, which was immediately matched by equivalent tariffs from China on US products.
More retaliatory measures by US President Donald Trump could add to further pressure on China’s capital markets, although the country’s foreign reserves did not shrink in June.