Chinese Shares Reflect Moderate Gains Amid Industrial Profit Decline
Chinese shares rose modestly on Thursday despite a 0.3% decline in industrial profits for January and February. The Shanghai Composite Index increased by 0.2% while the Shenzhen Component Index mirrored this gain. Key corporate highlights included significant profit increases for Zhejiang China Commodities City and approvals for drug trials by Jiangsu Hengrui Medicine and Shanghai Junshi Biosciences.
On Thursday, Chinese shares experienced moderate gains despite a reported decline in industrial profits for the initial two months of the year. The Shanghai Composite Index, a primary indicator for Chinese equities, increased by 0.2%, amounting to 5.05 points, closing at 3,373.75. Similarly, the Shenzhen Component Index also saw a rise of 0.2%, or 24.28 points, ending at 10,668.10.
The National Bureau of Statistics (NBS) disclosed a 0.3% decrease in industrial profits for January and February. NBS statistician Yu Weining associated this downturn with challenges faced by industrial enterprises, primarily driven by external factors, such as tariffs imposed by former U.S. President Donald Trump.
Recently, President Trump enacted a 25% tariff on imported vehicles. However, he indicated a willingness to reduce tariffs on China to facilitate an agreement with Bytedance, the Chinese parent company of TikTok.
In corporate developments, shares of Zhejiang China Commodities City Group surged by 7.2% after reporting a 15% increase in its 2024 attributable profit, totaling 3.07 billion yuan, along with a 39% rise in operating income, reaching 15.7 billion yuan.
Additionally, Jiangsu Hengrui Medicine’s shares climbed 4.7% following the approval to conduct trials for various drugs, including the SHR-9803 injection, intended for tumor treatment. Meanwhile, shares of Shanghai Junshi Biosciences increased by 3.9% after they received approval from China’s National Medical Products Administration to market the toripalimab injection, designed for hepatocellular carcinoma.
In summary, while Chinese shares advanced on Thursday, they faced the backdrop of a slight decline in industrial profits attributed to external tariff pressures. Notable corporate developments included significant gains for Zhejiang China Commodities City, Jiangsu Hengrui Medicine, and Shanghai Junshi Biosciences, highlighting the mixed economic outlook for the sector.
Original Source: www.tradingview.com
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