Thanks to the reduction of import tariffs on some U.S. goods by the Chinese government, A shares ushered in a “three consecutive rises”
The Shanghai Composite Index and the Shenzhen Component Index rose 1.72% and 2.87%, respectively, to 2866.51 and 10601.34; the GEM Index rose 3.74% to 2012.25, a three-year high since December 2016. At the same time, the onshore RMB against the US dollar closed the day at 301 basis points and hit a two-week high of 6.9696. The highest intraday price broke through the 6.96 mark to 6.9589.
Northbound funds continued to flow in significantly yesterday, with a net inflow of more than 10 billion yuan throughout the day, and the turnover of the two cities was 913.439 billion yuan, a 4.7% volume increase from the previous day
The entire market was red, and the media led a rise of more than 5%, with a daily limit of about 17 stocks. In terms of subject matter concepts, the concept of disinfectant led the increase by more than 9%. In addition, the express logistics stocks also made good, and the daily limit of Debang shares, Yuantong Express, Zhongchuang Logistics, and China Reserves. The No. 1 document issued by the central government continued to focus on the “agriculture, rural areas, and farmers” area. The agricultural sector fluctuated and rose during the day. The daily limit of agricultural products, New Wufeng, Fengle Seed Industry, Dunhuang Seed Industry, New Farmer Development, Tianma Technology and other daily limits.
To promote the healthy and stable development of Sino-US economic and trade relations, the Tariff Commission of the State Council issued an announcement to adjust the imposition of tariff measures on some imported goods originating in the United States. Analysts believe that this move is obviously to boost the confidence of enterprises and investors during the outbreak of the virus.
However, since the epidemic situation is still not really controlled, the future trend of A shares will still depend on the specific situation of the epidemic development
Shanxi Securities Strategy Analyst Ma Wenyu told the domestic media that there is a high probability that the index will fluctuate upward, and the possibility of a sharp decline is not high, but we must also guard against the risk of a callback after a rapid rise in the short term.
The central parity rate of the yuan against the US dollar dropped 162 basis points to 6.9985 yesterday, but rebounded sharply thanks to the news of tariff reductions to US goods. However, traders are also concerned that the short-term negative impact of the epidemic on the economy is overall negative for the RMB, and it is difficult for the exchange rate to appreciate significantly. Yesterday’s onshore trading session continued to maintain a low turnover of 15.2 billion US dollars. Considering that a large number of companies have not resumed work, they are still mostly self-operated by institutions and the market is more flexible. Expectations will also disrupt the market.