Stocks Of Chinese Companies Listed In The U.S. Climb After Trade Talks
Following optimistic remarks from Chinese and U.S. delegations who attended this week's trade talks, U.S.-listed Chinese companies saw improvements on their trade scales on Thursday.
The S&P U.S. Listed China 50 index revealed on Thursday that SINA and NetEase shares soared on Thursday by 5.79 and 3.65 percent respectively, Xinhua reported. The news came after both China and the U.S. shared optimistic results from the trade talks.
Over the past few months, market watchers stressed that SINA Corporation underperformed by a huge margin at 34.60 percent since January of last year. However, the latest developments could encourage investors to keep a hold on their shares while China and the U.S. negotiate the ongoing trade dispute.
SINA is set to reveal its earnings report on February 12. Until then, some analysts are waiting patiently for further progress on the Beijing-based tech company.
NetEase, as if on the same track as SINA, also struggled in 2018. On Thursday, Fairfield Current reported that the bank shed 41,041 shares. It now owns 54,375 shares following the move in the latest reporting period.
Financial experts are closely watching U.S.-listed Chinese companies now that the second round of trade talks between China and the United States has ended. Indexes have been both negatively and positively affected by the ongoing dispute.
American companies have also been affected by the China-U.S. trade issue. Apple reported that sales in China dropped during the last quarter of 2018. Nvidia followed suit, reporting that demand from the Chinese market declined.
After the trade talks ended on Thursday, U.S. President Donald Trump noted that there have been significant developments from the discussion held between him and the Chinese delegation. According to the Sydney Morning Herald, Trump said, "I can say there are a tremendous relationship and warm feeling and we've made tremendous progress."
Chinese Vice Premier Liu He also handed a letter to Trump from President Xi Jinping wherein China's leader expressed his hope for both countries to finally agree on a deal that will benefit their people and the global market as a whole.
It is expected that Xi and Trump will hold a summit sometime late February - before the tariff truce that started in December ends. Furthermore, Trump said in a tweet that there won't be a final deal until he meets the Chinese president to discuss "long-standing and more difficult points" related to the trade spat.
Most analysts believe that the trade dispute has been leaving an impact on both Chinese and U.S. companies. Trade figures have either fallen or climbed over the past few weeks, based on the developments that political leaders are making.