SHANGHAI, Feb 28 (Reuters) – China’s Shanghai Composite ended slightly lower in early trade on Monday. Under the disturbance of external factors such as geopolitical conflicts, investors were not in a high mood to go long, and the real estate and tourism sector was weak; military industry and lithium mining stocks bucked the trend and rose among the top gainers.
Shanghai Composite Index.SSECIn early trade, it closed down 0.1 percent at 3,446.44 points, with the CSI 300 index down.CSI300It fell 0.4%; the Shenzhen ChiNext Index edged up 0.1%, and the Shanghai Stock Exchange Science and Technology Innovation Board 50 component index edged down 0.1%.
“Recent geopolitical conflicts and (US) interest rate hike expectations will continue to disrupt the market, and foreign capital may be disrupted to a certain extent in the short term.” Chen Mengjie, chief strategist at Yuekai Securities Research Institute, said that combined with market performance, the impact on the consumption sector Smaller, the impact on the highly valued TMT sector is more significant.
She also pointed out that a major meeting will be held in March. It is expected that the market will remain stable during the two sessions, and the overall market will be dominated by structural rebound and oversold repair.
Chinese State Councilor Wang Yi said on Monday that he urged the United States to resume a rational and pragmatic policy toward China, implement the consensus reached by the two heads of state and the remarks made by President Biden, and put China-US relations back on track at an early date. We should return to the original meaning of the one-China principle, abide by the political commitments made to China, stop condoning and supporting “Taiwan independence”, and stop plotting “Taiwan to control China”.
Russian President Vladimir Putin put the nuclear deterrent on high alert on Sunday after facing a raft of new sanctions imposed by the West over its war on Ukraine. The United States says Putin is escalating the war with “dangerous words”.
Ukraine said it had repelled Russian ground forces that had attacked some of its largest cities. Ukraine’s presidency’s office said there would be no preconditions for talks with Moscow on the Belarus-Ukrainian border, according to Russia’s TASS news agency, which will begin on Monday morning.
The real estate sector led the decline, with the CSI 300 real estate index closing down 1.6 percent in early trading, after falling 2.4 percent at one point and down 1.6 percent so far this year.
The tourism sector also weakened. The China Securities Tourism Index fell 2.4% at one point, and then closed down 1.4% in early trading. Ministry of Transportation officials said that the total passenger flow during the Spring Festival travel in China was only 35.6% of the normal year before the epidemic, and there are still concerns about the local new crown epidemic.
Lithium mining stocks rose sharply, driving the CSI subdivided non-ferrous metals industry theme index to close 2.1% in early trading. Xin Guobin, vice minister of the Ministry of Industry and Information Technology, said earlier that we should focus on meeting production needs such as power batteries and moderately speed up the development of domestic resources such as lithium and nickel.
Military stocks were also among the top gainers. Stimulated by the further escalation of the Russian-Ukrainian war over the weekend, the CSI AVIC Military Industry Theme Index rose 2.2% during the session, and then closed up 1.6% in early trading.
Digital currency concept stocks soared, with multiple daily limits. The SWIFT “financial nuclear bomb” that the United States and Europe sanctioned Russia has landed. Some securities companies believe that this may speed up the process of RMB internationalization. In the future, China and Russia are expected to speed up the establishment of a local currency settlement system other than the US dollar.Sifang Jingchuang300468.SZPrincipal Century688201.SSHailian Jinhui002537.SZdaily limit.
CITIC Securities previously reported that the high point of geo-risk shocks may have passed, and the risk disturbance is mainly reflected in the emotional level. In March, it will enter the initial effect observation period of the stabilizing growth policy. It is expected that the follow-up policy will continue to increase and enter the concentrated force period. The “three bottoms” of A-shares have been confirmed in turn. It is recommended to maintain a relatively high position, closely follow the main line of stable growth, adhere to the balanced allocation of the two dimensions of industry and style, and focus on the “two lows” layout. (over)
Posted by Cui Zhuzhu; Reviewed by Zhang Xiliang