China stocks rise on progress in trade talks; STAR Market fever cools on 3rd day of trading

24 Jul, 2019

The blue-chip CSI300 index rose 0.8pc, to 3,819.83, while the Shanghai Composite Index also gained 0.8pc, to 2,923.28.

White House economic adviser Larry Kudlow on Tuesday called it a good sign that top US officials would be travelling to China to discuss reviving stalled trade talks, and said he expected Beijing to start buying US agriculture products soon.

Investors are also awaiting policy decisions from the US 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 10pc.

Trading was nevertheless crazy in several stocks, with shares of optical lens maker Fujian Forecam Optics Co surging 49pc.

Trading had hit a fever pitch on Monday, with shares rocketing as much as 520pc, as China's new Nasdaq-style board for homegrown tech firms made its debut.

Copyright Reuters, 2019

Read Comments