Mainland stocks edge down despite strong upsurge in US

Chinese mainland stock markets edged down on Thursday after a slight rise in the morning session.

As of closing time, the Shanghai Composite Index edged down 0.22 percent to 2,635.63 points, while the Shenzhen Component Index fell 0.7 percent to 7,698 points.

The two markets dropped in the afternoon session after a steady rise in the morning. As of the end of the morning session, the Shanghai market edged up 0.61 percent and Shenzhen 0.47 percent.

Chinese experts said they expected mainland stocks are likely to walk out of the doldrums and take a turn for the better.

“Industrial capital is increasing holdings of mainland shares. Overseas capital is also speeding up flow into the markets. Bets are now changing hands from individuals to institutional investors, which is a good sign,” Li Daxiao, chief economist at Shenzhen-based Yingda Securities, told the Global Times on Thursday.

The uncertain impact of slumping US stocks on A shares has eased as US mid-term elections results drove up US shares overnight.

The Chinese government has also released positive news for the securities sector in recent days.

On Monday, the opening day of the China International Import Expo, China’s top leader announced that a science and technology innovation board will be set up along with a pilot registration system in the Shanghai Stock Exchange.

China Securities Regulatory Commission also released a guideline on Tuesday that will improve the mechanism of stock suspension and stock trade resumption.

Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management Co, said that A shares may have bottomed out and are liley to rebound.