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在线翻译:
szdaily -> Markets -> 
Shares rally strongly
    2018-07-10  08:53    Shenzhen Daily

CHINA’S share market and the yuan bounced yesterday despite heightened trade tensions between the country and the United States after each imposed major tariffs on the other’s goods last week and investors nervously watched for more policy action.

Yesterday’s equities rally was seen driven by technical factors and government efforts to boost market confidence, but traders and analysts said the rise could be fleeting as a trade war with the United States will hit China’s economy and global growth.

“The rally is in part due to marginal improvement in liquidity conditions...and also thanks to a ‘warm breeze’ from regulators and top officials that helped lift market sentiment,” said Zhou Yu, analyst with Pacific Securities.

But she warned that “investors should not be overly optimistic about the short-term rally, as the mid-term uncertainties including trade war worries and the government’s deleveraging campaign persist.”

The Shanghai Composite Index, which tracks shares traded on the Shanghai Stock Exchange, ended 2.5 percent higher, its biggest one-day rise since May 2016. The blue-chip CSI300 Index finished up 2.8 percent, its best since August 2016.

The rebound followed a week of savage selling. Chinese markets fell in the run-up to Friday’s imposition of tariffs on US$34 billion worth of Chinese goods, which was immediately matched by equivalent tariffs from China on U.S. products.

More retaliatory measures as promised by U.S. President Donald Trump could add to further pressure on China’s capital markets, although the country’s foreign reserves did not shrink in June — the yuan’s worst month on record.

Policymakers have tried to soothe investors by reassurances of solid fundamentals.

“Currently, the general level of valuations of Shanghai-listed companies is relatively low, presenting obvious value investment opportunities,” the Shanghai Stock Exchange said late Sunday.

“Indeed, several Shanghai-listed companies have disclosed plans for buybacks for stake increases by shareholders, showing that the companies and shareholders are adamantly confident of listed companies’ operations, profitability and growth prospects.”

Whether sentiment will be optimistic in coming trading sessions remains to be seen. Chinese stocks have tumbled about 15 percent since the start of the year and bearish signs persist.

The yuan traded at 6.6221 per U.S. dollar in afternoon trading, gaining 0.4 percent from its late close Friday of 6.6489 yuan, after the dollar weakened following U.S. payrolls data. (SD-Agencies)

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