Stocks end higher, aided by tech shares

Global Times US Edition - - BIZMARKETS -

Chi­nese main­land stocks re­bounded from heavy losses on Thurs­day, bol­stered by tech shares as the US is set to lift its ban on ZTE Corp.

The Shang­hai Com­pos­ite In­dex got back to a psy­cho­log­i­cally key 2,800-point level on Thurs­day, surg­ing 2.16 per­cent to end at 2,837.66 points, while the blue-chip CSI300 in­dex also jumped 2.16 per­cent to 3,481.06 points.

The US Com­merce De­part­ment on Wednes­day said that it signed an agree­ment with ZTE to re­move a ban on the Chi­nese firm from do­ing busi­ness with Amer­i­can sup­pli­ers once it de­posits $400 mil­lion in an es­crow ac­count.

Fol­low­ing this, shares re­lated to 5G and chip tech­nolo­gies posted ro­bust gains. Shenzhen’s ChiNext, a tech-heavy NAS­DAQ-style board, jumped 3.30 per­cent to end at 1,614.63 points.

Mean­while, in­vestors’ sen­ti­ment was also sup­ported by pos­i­tive com­ments from State me­dia.

A re­port re­leased by the Xinhua News Agency early Thurs­day helped ease mar­ket con­cerns over US tar­iffs, cit­ing se­cu­ri­ties an­a­lysts’ com­ments that the val­u­a­tion of A shares have en­tered into a rea­son­able range, and com­pared with other stock mar­kets around the world, the main­land mar­ket is “sig­nif­i­cantly un­der­val­ued.”

In ad­di­tion, the re­port said that Chi­nese fi­nan­cial au­thor­i­ties have taken “un­prece­dented” mea­sures to ward off risks and sta­bi­lize the mar­ket.

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