Chinese shares dip amid global sell-off

Source: Xinhua| 2018-12-05 16:59:26|Editor: Yamei
Video PlayerClose

BEIJING, Dec. 5 (Xinhua) -- Chinese stocks ended lower Wednesday, recovering from sharp declines seen at market opening, as strong performances of liquor makers and pharmaceutical companies lifted the indices.

The benchmark Shanghai Composite Index ended 0.61 percent lower to close at 2,649.81 points while the Shenzhen Component Index closed 0.32 percent lower at 7,928.51 points.

The indices sank by more than 1 percent at opening, tracking overnight losses on Wall Street, which were sparked by worries over a possible economic slowdown.

The weak sentiment spilled into other markets, with a 1.27-percent drop in Japan's 225-issue Nikkei Stock Average and a 1.89-percent decline in Hong Kong's Hang Seng Index at market opening.

The losses in the benchmark Shanghai Composite Index quickly narrowed after opening, with consumer heavyweights such as Kweichow Moutai, a liquor producer, leading the comeback. The share price of Kweichow Moutai ended 1.31 percent higher Wednesday.

Pharmaceutical companies were also among the winners, with shares of Chongqing Lummy Pharmaceutical surging by the daily limit of 10 percent.

Investor sentiment has improved notably as downward pressure on the economy seems to have eased, said Haitong Securities.

The securities broker predicted continued recovery of A-shares in the short term due to low valuation and strong policy support.