China Stocks Rise Higher at End of Trade

China stocks were higher after the close on Thursday, as sectors in Real Estate Investments & Services, Financials, and Telecommunications led higher shares. 

At the close in Shanghai, the Composite index added 1.24%, while the SZSE Component Index gained 1.18%.

The best gainer of the session in the index was Zhejiang Haiyue Co Ltd., which rose 10.05% or 0.840 points to trade at 9.200 at the close. Meanwhile, Hubei Zhenhua Chemical Co Ltd. added 10.04% or 1.200 points to end at 13.150, and Qingdao Huijintong Power Equipment Co Ltd. was up 10.01% or 1.170 points to 12.860 in late trade.

On the other hand, there were also companies who didn’t perform well, such as Zhejiang Three Stars New Materials Co Ltd., which fell 9.99% or 3.99 points to trade at 35.95 at the close. Sanan Opto Electronics Co Ltd. declined 5.92% or 1.460 points to end at 23.190, and Sinomach Automobile Co Ltd. was down 5.43% or 0.640 points to 11.140.

The top gainers on the SZSE Component were Thaihot Group Co Ltd., which rose 10.02% to 28.45, China Vanke Co Ltd. Class A, which was up 9.03% to settle at 34.16, and Luxi Chemical Group Co Ltd., which gained 8.28% to close at 17.52.

The worst performers were HC Semitek Corp, which was down 7.20% to 18.30 in late trade, Zhejiang Hexin Industry Group Co Ltd., which lost 5.00% to settle at 39.10, and Hangzhou Tigermed Consulting, which was down 4.70% to 50.90 at the close.

Rising stocks outnumbered declining stocks on the Shanghai Stock Exchange (SSE) by 1106 to 230 and 28 ended unchanged.

The CBOE China Etf Volatility, which measures the implied volatility of Shanghai Composite options, was up 5.89% to 30.39.

The US Dollar Index Futures were down 0.06% at 89.71.

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China Rolls Out New Tax Cuts

Stocks related to the financial sector rose following the news that China will roll out new tax cuts to boost high-quality development.

Bank of Nanjing rose 3.65 percent to close at 8.23 yuan and New China Life Insurance surged 4.17 percent to close at 46.95 yuan ($7.47).

A State Council executive meeting on Wednesday made the decision that China will cut value-added tax (VAT) rates as part of a tax reduction package amounting to 400 billion yuan ($63,608,000,000) this year.

This tax rate, starting on May 1, will be lowered from 17 percent to 16 percent for manufacturing, and from 11 percent to 10 percent for transportation, construction, basic telecommunication services, and farm products.

The tax cuts will apply to all manufacturing companies. All businesses registered in China, be they joint ventures or wholly foreign-owned companies, will be treated equally, according to the premier.

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