Shanghai Composite down 0.57%, while ZTE hit limit up for a second day
Jul 17, 2018 (China Knowledge) - Shanghai Composite slipped 0.57% to 2,798.13 on Tuesday, as steel, titanium dioxide and car stocks were among the biggest decliners. Declining stocks outnumbered rising ones, among which fullerenes, graphene, 5G and breeding firms were among the best gainers.
ZTE shares hit limit up for a second day, up nearly 40% in four trading days, as the U.S. Department of Commerce (DOC) formally lifted the ban on ZTE. Driven by ZTE, 5G stocks jumped as well, with FRD Science & Technology and Freely Communication both rising 10%.
Essence Securities, a top broker in China, believes that 5G stocks are till the major opportunities for long-term investment in the communication industry. Key calls are the companies with exposure to 5G radio frequencies and 5G optical communication.
The market is likely to experience significant volatility. Therefore, investors should buy quality stocks on dips and sell them on peaks and be careful when seek the uptrend. As a larger rally is expected to be seen in the market, key calls are 5G stocks and chips sectors, according to a leading China investment consultancy Shandong Shenguang.
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