Headline indices of the Mainland China equity market closed higher for second straight session on Tuesday, 19 February 2019, as investor risk appetite strengthened amid optimism for a deal on the US-China trade war as the world's two largest economies will resume talks in Washington later in the week. Trade was in a narrow range amid a lack of major trading incentives as New York markets were on Monday shut for Presidents' Day. At closing bell, the benchmark Shanghai Composite Index added 0.05%, or 1.29 points, to 2,7565. The Shenzhen Composite Index, which tracks stocks on China's second exchange, rose 0.18%, or 2.65 points, to 1,443.60. The blue-chip CSI300 index dropped 0.18%, or 6.13 points, to 3,439.61.
The mainland's equity gauge jumped 2.7% on Monday after banks' new loans surged to a record in January and off-the-balance-sheet lending reversed declines, raising expectations that economic growth will pick up on increasing financing demand.
Guangzhou Pearl River Industrial Development and Guangzhou Port led the gains among companies based in the southern province of Guangdong after Beijing unveiled a long-heralded plan to create the Greater Bay Area by linking Hong Kong and Macau with cities in Guangdong.
A gauge tracking stocks linked to the Greater Bay Area climbed. Property developer Guangzhou Pearl River surged by the 10% daily limit to 5.02 yuan and Guangzhou Port also jumped by that much to 4.84 yuan. Shenzhen Yan Tian Port Holding gained 10% to 6.46 yuan.