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

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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.

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** 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.

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** 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)



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