CHINA TOPIX

04/19/2024 04:33:17 pm

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China Business News: Chinese Stock Market Sees Light From Its 3 Major Tech Companies

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(Photo : Reuters) Last week proved to be a difficult week in the Chinese stock market when the country's Shanghai Composite index fell to 6.4 percent, closing in at 4,478.36 below the standard on Friday.

Last week proved to be a difficult week in the Chinese stock market when the country's Shanghai Composite index fell to 6.4 percent, closing in at 4,478.36 below the standard on Friday. With a total of 13.3 percent plunge during the week, fears of market correction through monetary contributions and other sources will not be enough to lead the stocks again after their 928 days bull run.

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According to Zacks, China's Shenzhen Composite Index also plunges to 5.9 percent and closing in at a low 2,742.18 during the weekend. The World Federation of Exchanges said that there are over $10.3 trillion dollars untouched in China's stock market, causing investors to worry about their chances.

While they see chances of the stock market pulling off a surprising drought, this is not reportedly only because they have finally recovered on their stocks, but for the monetary contributions from the government and occasional investors contribution.

In their lowest, the Chinese stock market sees the light in three of their major tech companies that are likely to stand out amidst the crisis. Baidu Inc, China's biggest language search platform is noted to have the fastest escalation in the last seven days and expectations of its earnings are said to hit 30.6 percent. China Mobile Limited and Sohu.com were also part of the three tech companies that are seen to help in rehabilitating the country's stock market.

Shane Oliver of AMP Capital said, "After rising 140% over 12 months and around 50% year to date such volatility is to be expected as it has risen a bit too far, too fast. Whether or not a market correction indeed occurs, investors are likely to benefit from these Chinese technology stocks that are likely to outperform the broader equity market."

According to CNBC, Evan Lucas, a market strategist, said that those stocks that were long favored by the Chinese traders outrun the wider index slump to fall. The biggest losers included solar-equipment manufacturer EGing Photovoltaic Tech Company and Shanghai Construction Group, which plummeted 21 and 19 percent respectively from June 15-19. Both Shanghai-listed companies had margin trade ratios of about 44 and 34 percent, respectively.

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