Shanghai Composite rose in early trading as tech stocks soared on ZTE’s ban lifted

minutes 2018/07/12 06:50:27
Shanghai Composite, A-share, ZTE

Jul 12, 2018 (China Knowledge) - Shanghai Composite has climbed 1.9% in morning trade. According to analysts, shares of TMT and other high-tech sectors soar as US is expected to lift ban on ZTE, pushing the market to rise.

Shanghai Composite rose to 2,830.44 in early trading, up 1.9%, with turnover reaching RMB 88.7 billion, while total turnover of the previous trading day was RMB 138.2 billion.

"Now, driven by wide disagreement on market prospect and strong market volatility, some investors believe it is the right time to buy more shares," Guodu Securities analyst Xiao Shijun pointed out.

He said that the plunge yesterday was mainly driven by US unveiling USD 200 billion list of Chinese imports for 10% tariffs. However, the impact on the market is fading away as the market has largely priced in the new tariff move. The macroeconomic data for June will be released recently, while interim reports of listed companies are going to be released as well, hence there are still many uncertainties in the short term.

The US Commerce Department reached an agreement with China's telecommunications giant ZTE on Wednesday that ZTE's ban is expected to be lifted. ZTE’s shares all rose sharply on Thursday, with ZTE arrived at an intraday price of RMB 13.31 in A-share market.

CSI 300 touched 3,477.97, up 2.07% in early trading and the CSI 300 Index Futures reached 3,472.6, up 3.00%, with 14,930 contracts.

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