China's shares closed up 0.8 percent on Tuesday as investors sought bargains among index heavyweights such as Baoshan Iron and Steel Co Ltd and China United Telecommunications Corp.
The benchmark Shanghai composite index finished at 1,087.794 points, but it is still down 14.1 percent so far this year, battered by factors such as Beijing's economic-cooling steps and its unpopular scheme to float $250 billion in non-traded state holdings in listed companies. Analysts said sentiment was poor despite Tuesday's technical rebound and sluggish trade indicated the market would not be able to reverse its weakness at least before the end of this year.
"Many investors believe the economic-cooling steps will continue to hit corporate bottom lines next year," said analyst Cao Xuefeng at West China Securities.
"Institutional investors also lack cash for now due to the year-end settlements, so it's unlikely the market will stage a decent rally in the near term." Technical buying helped large-caps outperform the market on Tuesday after they had led this year's market slide.
Baosteel, China's top steel maker, was the second most actively traded counter, gaining 2.1 percent to 3.92 yuan, but the stock has still plunged 35 percent so far this year.
China Unicom, the small of the country's two mobile operators, was the most active, rising 1.9 percent to 2.68 yuan.
Comments
Comments are closed.