For the first time in over a week, major Chinese indexes finally got a break from continued losses. Chinese stocks rallied this week following the release of better-than-expected export data and strong numbers released by Ping An Bank. Despite the sudden escalation of the trade dispute between China and the United States, the two factors were still able to elevate stock prices throughout the markets.
On Thursday, the Shanghai Composite Index rallied by 0.9 percent to 2,794.55. The increase ended the index's six-day losing streak, which had sent it to a five-month low. Based on the still low trading volume of the benchmark, analysts predict that the increase may be temporary.
Trading volume for the stock was still 9.3 percent below its 30-day average. On the same day, the Hang Seng Index in Hong Kong managed to gain 0.5 percent to 26,120.77.
Investor sentiment was mainly boosted by a report released by Chinese customs, which revealed a 3.3 percent increase in overall overseas shipments.
The figure managed to beat analysts' forecasts, which had expected a 1 percent decline in the same period. Investor sentiments were further boosted by an announcement from international index compiler MSCI, which announced on Thursday that it would be raising the weight of Chinese traded shares on its gauge tracking emerging markets.
Major indexes also received a bump after Ping An Bank released its first-half of the year profit report. The bank reported a 15 percent increase in its first-half profits, sending the company's stock higher by 6.2 percent.
This was the stock's biggest one-day gain since April. Ping An's net profits increased to $2.19 billion for the first six months of the year, mostly due to the widening of its net interest margins and drop in its non-performing loans.
Improvements in Chinese stocks were not limited to major indexes this week as numerous other companies experienced gains as well. Two new entries in China's popular technology innovation board, or Star Market, had also experienced massive gains this week. Chipmakers Shanghai Friendess Electronic Technology and Amlogic experienced substantial gains during their first day of being on the innovation board.
Amlogic's stocks had jumped by more than 272 percent, while Shanghai Friendess gained 255 percent. Both companies still managed to attract investors despite listing slightly higher than the industry average.
In Hong Kong, one of the biggest winners was Swire Pacific, which saw a 4 percent gain on Thursday. The increase came right after the company reported its first-half profits, which surged by more than 12 times when compared to the same period last year. The bump was mainly due to the sale of two major property units.
