Major Chinese Stock Market Indexes Show Mixed Performance Amid EU Investigation
By Siyoon Yoon
Seoul = Yonhap Infomax: On the 14th, major Chinese stock market indexes registered a mixed performance as related stocks faltered following the European Union (EU)’s investigation into electric vehicle subsidies.
The Shanghai Composite Index closed at 3,126.55, up 3.48 points (0.11%), while the Shenzhen Composite Index closed at 1,917.02, down 12.43 points (0.64%) on the same day.
Despite expectations for China’s economic stimulus package, the Chinese stock market response reflected the negative impact of the EU subsidy investigation.
The EU has initiated an investigation into potential unfair competition resulting from subsidies provided to electric car manufacturers, citing artifically low electric car prices in China. Consequently, the majority of top stocks in the Shenzhen index experienced a decline, with BYD, an electric car manufacturer, witnessing a substantial plunge of over 3%.
“This investigation could potentially lead to increasing protectionism and geopolical tensions in China’s crucial export markets,” warned Xinqi, an analyst at Beijing Citic Securities.
In the meantime, as the release of economic indicators, including China’s industrial production and retail sales, looms, the Shanghai index closed higher, fueled by mounting expectations that China’s recent economic stimulus package would contribute to last month’s growth.
The regional yuan has been announced to appreciate.
On the morning of this day, the People’s Bank of China issued the standard exchange rate for dollar-yuan transactions at 7.1874 yuan, marking a 0.0020 yuan (0.03%) decrease from the previous rate.
In the Shanghai index, stocks in the oil, gas, and consumer goods sectors experienced notable gains, while software and Internet services stocks endured the most significant losses.
Also on this day, the People’s Bank of China acquired 110 billion yuan worth of 7-day reverse repurchase agreements (repos).
Contact: syyoon@yna.co.kr
(End)
Note: This article was published on the Infomax financial information terminal at 16:23, two hours earlier.
(Seoul = Yonhap Infomax) Reporter Siyoon Yoon = On the 14th, major Chinese stock market indexes showed a mixed performance, with related stocks falling following the European Union (EU) investigation into electric vehicle subsidies.
On this day, the Shanghai Composite Index closed at 3,126.55, up 3.48 points (0.11%), and the Shenzhen Composite Index closed at 1,917.02, down 12.43 points (0.64%).
Despite expectations for China’s economic stimulus package, the Chinese stock market reflected the negative news of the EU subsidy investigation.
The EU said it was launching an investigation into subsidies for electric car manufacturers over possible unfair competition, saying electric car prices in China were being kept artificially low.
As a result, most of the top stocks in the Shenzhen index fell, and in particular BYD, the maker of electric cars, plunged more than 3%.
“It could lead to growing problems of protectionism and worsening geopolitics in China’s key export markets,” Xinqi, an analyst at Beijing Citic Securities, said of the EU investigation.
Meanwhile, ahead of the release of economic indicators such as China’s industrial production and retail sales, the Shanghai index closed higher as expectations mounted that China’s recent economic stimulus package would have contributed to last month’s growth.
The regional yuan was announced to appreciate.
On this morning, the People’s Bank of China announced the standard exchange rate for dollar-yuan transactions at 7.1874 yuan, down 0.0020 yuan (0.03%) from the previous rate.
In the Shanghai index, oil, gas, and consumables rose the most, and software and Internet services fell the most.
Meanwhile, on this day, the People’s Bank of China bought 110 billion yuan worth of 7-day reverse repurchase agreements (repos repos).
syyoon@yna.co.kr
(end)
This article was published on the Infomax financial information terminal at 16:23, two hours earlier.
#중국증시마감 #electric #vehicle #subsidies #investigation #mixed.. #Related #stocks #fall
