SHANGHAI: China stocks gained on Wednesday, lifted by reports of progress in Sino-U.S. trade negotiations, while excitement towards Shanghai’s Nasdaq-style tech board cooled down a bit on the third day of trading.
** The blue-chip CSI300 index rose 0.8%, to 3,819.83, while the Shanghai Composite Index also gained 0.8%, to 2,923.28.
** White House economic adviser Larry Kudlow on Tuesday called it a good sign that top U.S. officials would be travelling to China to discuss reviving stalled trade talks, and said he expected Beijing to start buying U.S. agriculture products soon.
** Investors are also awaiting policy decisions from the U.S. Federal Reserve, which is widely expected to cut interest rates later this month. China’s central bank governor Yi Gang said the country’s current interest rate level is appropriate, the financial magazine Caixin reported on Tuesday.
** Trading on Shanghai’s tech board – the STAR Market – has cooled down since Monday’s debut fever, with turnover shrinking and price fluctuations narrowing.
** All of the 25 STAR Market stocks gained, but most closed up less than 10%. Trading was nevertheless crazy in several stocks, with shares of optical lens maker Fujian Forecam Optics Co surging 49%.
** Trading had hit a fever pitch on Monday, with shares rocketing as much as 520%, as China’s new Nasdaq-style board for homegrown tech firms made its debut.