New Trade Talk Hopes & Tencent Earnings Lift Chinese Stocks

chinese stocks

China stock market found its feet on Thursday as hopes for new trade negotiations between Washington and Beijing grew.

Reuters reported that Chinese officials have delivered a written response to U.S. trade demands, raising prospects that the two economic giants may take measures to deescalate their months-long trade bitter trade relations.

The SZSE Component closed 1.18% higher, while the benchmark Shanghai Composite index gained 1.36%. China Hi-TechGroup Co Ltd, was one of the biggest gainers on Thursday on the Shanghai Composite, after adding 0.52 points, or 10.08% to end at 5.68.

Tengda Construction Group Co Ltd added 0.240 points, or 10.04% to 2.630, while Shanghai Shibei Hi-Tech Co Ltd A climbed by 0.76 points, or 10.04% to close at 8.33.

Nanjing Chixia Development Co Ltd, was among the biggest losers on Thursday closing at 3.460 after shedding 0.190 points, or 5.21%. Shanghai Zhongyida Co Ltd B dropped 0.007 points, or 5.11% to 0.130, while Harbin Gong Da High-Tech Enterprise Development Co Ltd shaved off 0.160 points, or 5.11% to close at 2.970.

China’s H-share index listed in Hong Kong has lost 11.1% since the beginning of the year, while Shanghai stock index has declined 20.41%. Meanwhile, Hong Kong’s Hang Seng Index added 1.75%, or 448.91 points to close at 26,103.34. Tencent Holdings Ltd, a component of the index, contributed 29% of the gains after posting higher-than-anticipated third quarter results.

The Shenzhen-based company reported a profit of $3.39 billion, or 23.3 billion yuan for the 13-week period to September 30, representing an increase of 30% and flying past analyst estimates. Tencent said the profit included $1.3 billion, or 8.8 billion yuan gain from the listing of Meituan Dianping food and delivery company in Hong Kong.

The WeChat owner came out with revenue of 80.6 billion yuan, up 24% and in line with expectations. Shares of the company ended the session with a gain of 5.80% following the results.

U.S. stocks, on the other hand, closed lower Wednesday, as the Dow fell into a wild session. Apple Inc. extended its loses to close the session at $186.80 after several of its suppliers including Lumentum Holdings cut their outlooks citing falling demand for pricier smartphones.

The Dow suffered its fourth consecutive decline after dropping 0.8%, or 205.99 points to end at 25,080.50. The Nasdaq Composite Index gave away 0.9%, 64.48 points to 7,136.39, while the Standard & Poor’s 500 index declined 0.8%, or 20.60 points to 2,701.58.