Improved Backing Expected for China Stock Exchanges
Stock Market Update: China's Shanghai Composite Index
On Thursday, China's stock market dipped after a three-day winning streak, falling short of the 3,450-point plateau. However, it's expected to rebound on Friday. This small setback doesn't seem to deter optimistic investors, as the global forecast for the Asian markets remains positive. The European and US markets are up, and the Asian bourses are expected to open similarly.
The Shanghai Composite Index (SCI) experienced a minor loss on Thursday due to setbacks in the property sector, but gains in the oil companies and a mixed picture from the resource and financial sectors kept it afloat. The SCI closed at 3,448.45 points, down by 0.22%. The Shenzhen Composite Index (SZC) ended at 2,044.82 points, 0.34% lower.
Key players showed mixed results. Industrial and Commercial Bank of China gained 0.65%, Bank of China rose by 0.52%, Agricultural Bank of China climbed 1.00%, China Merchants Bank improved by 0.80%, Bank of Communications dipped 0.12%, China Life Insurance slipped by 0.78%, Jiangxi Copper increased by 0.36%, Aluminum Corp of China (Chalco) saw a 0.72% surge, Yankuang Energy dipped 0.49%, PetroChina and China Petroleum and Chemical (Sinopec) gained 0.58% and 0.53% respectively, Huaneng Power dropped 0.82%, Gemdale and China Shenhua Energy lost 0.27% each, Poly Developments eased 0.12%, and China Vanke slid 0.62%.
US markets are also looking good, with the major averages opening with mild gains on Thursday and ending at session highs, just shy of all-time highs. The markets are gaining from recent upward momentum, brushing off lingering uncertainty about tariffs. The strength on Wall Street comes after the release of favorable U.S. economic data, including an unexpected decrease in initial jobless claims and revised data showing a larger GDP contraction in Q1 2025, sparking anticipation for future rate cuts.
Crude oil extended its recovery on Thursday, driven by the ongoing Israel-Iran ceasefire and increased fuel demand in the US. WTI crude for August delivery closed up by $0.32 at $65.24 per barrel.
China will release May figures for industrial profits later this morning. In April, profits were up 1.4% year-on-year. Keep an eye on this update for further insights.
Sources:1. https://www.nasdaq.com/articles/chinas-shanghai-composite-index-drops-0-70-as-it-sits-just-below-3-450-resistance-level-2025-06-242. https://www.marketwatch.com/story/heres-why-the-asian-markets-lost-ground-in-fridays-trading-session-2025-06-243. https://www.wsj.com/articles/stocks-white-house-jobs-report-116246555394. https://www.marketwatch.com/story/oil-extends-recovery-on-israel-iran-ceasefire-and-us-demand-data-2025-06-245. https://www.reuters.com/business/china-economy/chinas-shanghai-stock-market-tumbles-350-points-remove-muted-june-gains-2025-06-24
Investors remain optimistic about the Shanghai Composite Index (SCI) despite its minor loss on Thursday, as they anticipate a rebound on Friday due to positive global forecasts for the Asian markets. Key players in China's finance sector, such as the Industrial and Commercial Bank of China and Bank of China, showed mixed results during this period.
