In the PM session, market changed direction and moved upward. Till market closed, Shanghai Index jumped above yesterday level, but Shenzhen Index was still below that level. Comprehensive Finance and Non-Banking Finance led the gain. Agriculture and Medical led the fall. In total, both markets traded 578.29 billion RMB, up 0.89% dod.
|Open||Close||% Change||(bn yuan)|
|Sector||Top 1||Led by||Top 2||Led by|
|Upward-leading||Comprehensive Finance||600318||Non-Banking Finance||601108|
*Revenue Growth, R&D Spending Slow for China Internet Majors
Revenue growth and R&D spending slowed sharply at China’s major internet companies in the first four months of 2020, even as the coronavirus-induced lockdown increased demand for some internet-driven services like telecommuting, online education, and digital entertainment.
*China to Relax Border Controls for Flights from Singapore and Several Others
China will soon relax its border controls for Singapore and several countries, allowing certain categories of people to travel to some cities. Chinese state media on Wednesday reported that the Civil Aviation Administration of China (CAAC) will let domestic and foreign airlines apply for “green channels” for chartered flights to airports in the mainland.
*China Arrests Yuan Tumble with Stronger-Than-Expected Fixing
A stronger-than-expected fixing was enough to steady the yuan after increasing U.S.-China tensions sent the offshore rate toward a record low. The offshore yuan traded steady at 7.1809 a dollar as of 10:33 a.m. in Hong Kong after the People’s Bank of China set its fixing at 7.1277. While that was just slightly stronger than forecast, traders took it as a sign that the central bank would want to avoid rapid depreciation. The onshore rate, which is nearing its weakest since 2008, was also little changed.
Disclosure: Interactive Brokers
Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Guosen Securities Co., Ltd and is being posted with permission from Guosen Securities Co., Ltd. The views expressed in this material are solely those of the author and/or Guosen Securities Co., Ltd and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.