A billboard in Shanghai displays key indexes of Chinese mainland stock markets. CHINA DAILY
Analysts expect a slower but more sustained market uptrend for China equities, supported by the economy's resilience, a more market-friendly policy backdrop, attractive valuations, improving corporate earnings and the prospect of fresh capital inflows.
On Tuesday, China's benchmark Shanghai Composite Index closed down 0.11 percent at 4,091.89, and the Shenzhen Component Index gained 0.93 percent to 15,675.25, while the ChiNext — which tracks tech-heavy growth enterprises — finished the day 1.72 percent higher at 4,102.94.
Analysts at Guotai Haitong Securities said a new upward cycle has begun for Chinese shares and projected solid performance in the third quarter, with major indexes potentially reaching fresh highs.
In a report released on Monday, the brokerage said easing tensions in the Middle East and improving shipping conditions through the Strait of Hormuz should help moderate inflation expectations and reduce market uncertainty.
