Stocks in Shanghai opened slightly higher on Friday, supported by buying in defensive sectors as mainland investors adopted a cautious but constructive stance following mixed global cues.
Value sectors lead early gains
The Shanghai Composite edged upward in early trade, with utilities, consumer staples, and selected industrial names attracting interest. Financials were mixed, reflecting uncertainty around credit demand and margin trends.
Technology shares underperformed, echoing weakness across international markets, while exporters traded narrowly as currency movements remained contained.
Domestic focus offsets global volatility
Mainland traders appeared more focused on domestic policy expectations than overseas developments, with hopes of targeted stimulus and infrastructure support helping stabilise sentiment. Activity levels were moderate, indicating a wait-and-see approach ahead of upcoming economic data releases.
Small- and mid-cap stocks showed relative resilience, driven by retail participation and rotation into perceived value opportunities.
Liquidity and policy expectations in focus
Liquidity conditions remain supportive, although investors are increasingly selective. Analysts noted that mainland markets are benefiting from a more domestically driven investor base, which has helped dampen the impact of offshore volatility.
Corporate earnings guidance and policy signals are expected to be key drivers over the coming weeks, particularly for manufacturing and green-energy segments.
Outlook: steady but restrained
While near-term momentum remains limited, strategists expect Shanghai equities to hold broadly stable provided policy support remains visible. Defensive positioning is likely to persist until clearer signals emerge on growth and global risk appetite.
Newshub Editorial in Asia – 6 February 2026
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