China stocks rise as COVID impact fades, stimulus lifts sentiment - Financial Post - Financial Daily News Site

China stocks rise as COVID impact fades, stimulus lifts sentiment – Financial Post

Article content

SHANGHAI — China stocks rose on Monday as both Beijing and Shanghai have been returning to normal life from the biggest COVID-19 outbreak in two years, while measures to revive the economic growth helped boost investor sentiment.

The CSI300 index rose 1.5% to 4,152.24 points at the end of the morning session, while the Shanghai Composite Index gained 1.1% to 3,228.93 points.

The Hang Seng index added 1.1%, to 21,311.98 points. The Hong Kong China Enterprises Index rose 1.3% to 7,363.81.

Advertisement 2

Article content

** Beijing will further relax COVID curbs by allowing indoor dining, while Shanghai has lifted most anti-virus curbs in recent days.

** “Reopening in Shanghai was a positive catalyst in itself, but the immediate impact is more on sentiment than on fundamentals,” said Morgan Stanley analysts in a note. “We continue to advise patience.”

** China’s central bank will strengthen the implementation of its prudent monetary policy and bring forward steps to support the economy, vice governor Pan Gonsheng said.

** U.S. Commerce Secretary said on Sunday that President Joe Biden has asked his team to look at the option of lifting some tariffs on China to combat the current high inflation.

** The Caixin services purchasing managers’ index (PMI) rose to 41.4 in May from 36.2 in April, but still below the 50-point mark that separates growth from contraction.

Advertisement 3

Article content

** The tech-focused STAR Market added 4.3%, extending gains from a 4.7% jump in the previous session, amid speculations that the market will lower its investor threshold.

** New energy shares soared 5.9%, with new energy vehicles surging 6.2% and photovoltaic firms up 5.5%.

** The STAR 50 index and the new energy index had led gains in a rebound since a recent trough on April 26, up roughly 30% and 40%, respectively.

** However, the CSI 300 Real Estate Index and the Hang Seng Mainland Properties Index both lost more than 3%.

** Tech giants trading in Hong Kong rose 2.4%, with food-delivery giant Meituan up 7% as its quarterly revenue surpassed analysts’ estimates. (Reporting by Shanghai Newsroom; Editing by Shailesh Kuber)

Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Tags: #China #stocks #rise #COVID #impact #fades #stimulus #lifts #sentiment #Financial #Post

Leave a Comment