China stocks ended Friday up in volatile trading, with the market drawing some support from a rebound in global equity markets and oil prices. The CSI300 index rose 1.0 percent, to 3,113.46 points, while the Shanghai Composite Index gained 1.3 percent, to 2,916.56 points. For the week, CSI300 was down 0.2 percent and SSEC was up 0.5 percent.
"We'll likely witness a lot of volatility in the first half of the year," said Yu Jun, partner at hedge fund manager He Ju Investment. "Investors are waiting for more clarity, and certainty," regarding issues including economic growth and the pace of yuan's depreciation. Yu Jun, partner at hedge fund manager He Ju Investment, said that the market is in a "risk-off" mode, amid fears of economic slowdown, further yuan depreciation, and a possible share supply glut due to impending reform of initial public offerings.
"We'll likely witness a lot of volatility in the first half of the year," Yu said. "Investors are waiting for more clarity, and certainty." In an apparent attempt to ease market concerns, Fang Xinghai, the vice chair of the Chinese Securities Regulatory Commission, sought to counter concerns China was seeking to devalue the yuan to gain a competitive advantage for its exports. "A depreciation is not in the interests of China's rebalancing; a too-deep currency fall would not be good for consumption," Xinghai said at the World Economic forum. Analysts say that the indexes' valuations have been dragged lower by Chinese heavyweights such as state-owned lenders and steelmakers, whose business prospects are worrying. But on Friday, all main sectors were up, with an index tracking energy shares surging 3.5 percent on a recovery in oil prices.
Comments
Comments are closed.