Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    'A-share fluctuations due to lackluster Q3 earnings'

    By SHI JING in Shanghai | China Daily | Updated: 2020-10-28 09:06
    Share
    Share - WeChat
    An investor monitors stock prices on his phone at a stock brokerage in Shanghai. [Photo by Lyu Liang/For China Daily]

    The recent fluctuations in the A-share market, mainly due to the less-than-stellar third-quarter results of large-cap companies, will not last long as the country's robust economic recovery will continue to buoy investment prospects, said experts.

    The benchmark Shanghai Composite Index rose by 0.1 percent on Tuesday to close at 3254.32 points, while the Shenzhen Component Index moved up by 0.59 percent to 13269.65 points.

    However, collective trading volume at the Shanghai and Shenzhen bourses contracted by 0.38 percent to 631.2 billion yuan ($93.9 billion) on Tuesday. The northbound investment-the trading volume from overseas investors using the stock connect program between Shanghai, Shenzhen and Hong Kong-saw net outflows of about 4.63 billion yuan.

    The underwhelming performance of large-cap companies seems to have halted the bull rally on the A-share market for the time being, said industry experts. Share prices of China's top alcohol brand Kweichow Moutai dropped by 1.1 percent to 1,625 yuan per share on Tuesday. The baijiu maker's latest fiscal report showed that it posted slower-than-expected growth in quarterly profit during the third quarter of this year. Joyoung Co Ltd, a leading Chinese home appliance maker, saw its share prices fall by 10 percent on Tuesday, after reporting lackluster third quarter results.

    According to a research report from Guosen Securities, ever since the market resumed trading after the eight-day holiday in October, nearly 594 A-share listed companies saw their prices rise by more than 10 percent by Friday. But on the other hand, at least 164 companies saw their prices fall by 10 percent in October, among which 32 are companies with a market capitalization of more than 30 billion yuan.

    Yan Xiang, chief strategist at Guosen said that the recent price slump of certain industry leaders is mainly because their performances have not been to the market expectations. As companies have started releasing their third quarter fiscal results, investors tend to be more cautious to avoid any uncertainties, he said.

    Pickle maker Chongqing Fuling Zhacai Group Co Ltd reported a 3.01 percent year-on-year net profit increase in the third quarter, a growth rate far below the market expectations. The price slump for Changchun High and New Technology Industries (Group) Inc and G-bits Network Technology (Xiamen) Co Ltd follow the same logic, said Yan.

    Companies in the pharmaceutical, electronics and computer industries saw the maximum price slumps. This was mainly because their prices were already at record high positions. Management teams of some overvalued companies also sold their shares when share prices approached the peak position, which led to negative sentiment among investors, said Yan.

    "Compared to the first half of this year when liquidity was adequate, economic recovery has become the new theme of the market. Therefore, undervalued companies and cyclical sectors may provide the maximum opportunities," he said.

    Yang Delong, executive general manager of Shenzhen-based First Seafront Fund, attributed the trend to a change in investment style toward the end of the year. Undervalued sectors such as banks, real estate companies and insurers have shown signs of a rebound recently. The decline of some overvalued market leaders is rational, as investors have sold some of them to book profits, he said.

    But the recent decline for large caps is just temporary. In the long run, the large-cap market leaders still promise much room for growth, according to Yang. The decline on the other hand has provided opportunities for investors.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    日韩欧美成人免费中文字幕| 国精品无码一区二区三区左线| 无码人妻黑人中文字幕| 中文字幕一区视频| 无码AV大香线蕉| 国产精品亚韩精品无码a在线| 无码夫の前で人妻を侵犯| а√在线中文网新版地址在线| AV大片在线无码永久免费| 亚洲午夜国产精品无码| 合区精品久久久中文字幕一区| 天天爽亚洲中文字幕| 精品无人区无码乱码毛片国产 | 欧日韩国产无码专区| 亚洲国产精品无码专区在线观看| 色综合中文字幕| 亚洲va中文字幕无码久久不卡| 久久精品无码一区二区日韩AV| 无码专区永久免费AV网站| 波多野结衣AV无码久久一区| 亚洲日韩中文字幕日韩在线| 中文字幕在线观看免费视频| 国产在线精品一区二区中文| 亚洲欧美日韩中文在线制服| 中文字幕亚洲综合小综合在线| 日无码在线观看| 亚洲午夜无码AV毛片久久| 免费无码又爽又黄又刺激网站| 精品欧洲AV无码一区二区男男| 亚洲国产精品无码久久久秋霞2| 一本加勒比hezyo无码专区 | 亚洲精品无码不卡| 无码精品人妻一区二区三区人妻斩 | 成在线人AV免费无码高潮喷水| 日日摸日日碰夜夜爽无码| 无码国产精品一区二区免费式芒果 | 免费无码国产在线观国内自拍中文字幕| 中文字幕乱码人妻一区二区三区 | 久久久久亚洲精品中文字幕| 亚洲欧美成人久久综合中文网| 中文字幕精品视频在线|