China Stocks Mixed as Defensive Sectors Spark Intraday Recovery

MT Newswires Live15:51

Chinese shares closed mixed at the end of Tuesday's session, with gains in defensive sectors helping equities recover from an earlier sharp drop.

The Shanghai Composite Index, the main gauge of Chinese stocks, closed 0.1% higher at 3,800.86. The Shenzhen Component Index, however, slipped 0.3% to 12,353.70.

The technology sector ticked up at the end of the trading day, with the SSE STAR 50 Index (SHA:000688), which tracks the 50 largest science and technology companies on the Shanghai bourse, closing 0.46 of a point higher to 1,427.18 from its 2.6% drop at market open.

The afternoon recovery came as capital rotated into defensive plays. The energy sector reported gains, with PetroChina (SHA:601857) surging 3% and Guanghui Energy (SHA:600256) jumping 6%.

Two of China's largest banks, Industrial and Commercial Bank of China (SHA:601398) and Agricultural Bank of China (SHA:601288), ended 1% higher.

In company news, Jiangsu Leadmicro Nano-Equipment Technology (SHA:688147) plans to raise up to 4.94 billion yuan via a private placement of A-shares. The micro-nano equipment manufacturer's shares closed 5% lower Tuesday.

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