China: China stocks close on a high after Wall Street rebound

MSCI’s Asia ex-Japan stock index was firmer by 0.06 per cent.

REUTERS|

Mar 27, 2019, 03.05 PM IST

PTI

Beijing is beefing up measures to support the manufacturing industry by cutting the value-added tax, increasing infrastructure spending and reducing direct government intervention.

SHANGHAI: China

stocks

closed higher on Wednesday following two straight sessions of losses, as a rebound on

Wall Street

aided sentiment, while weak industrial profit data fuelled hopes for more stimulus.

The blue-chip CSI300 index ended up 1.2 per cent at 3,743.39, while the Shanghai Composite Index gained 0.9 per cent to 3,022.72 points. China’s industrial firms posted their worst slump in profits since late 2011 in the first two months of this year, data showed, as increasing strains on the economy in the face of slowing demand at home and abroad took a toll on businesses.

Beijing is beefing up measures to support the manufacturing industry by cutting the value-added tax, increasing infrastructure spending and reducing direct government intervention.

Foreigners resumed their net buying of A-shares on Tuesday and Wednesday morning, after selling a bit more than 10 billion yuan ($1.49 billion) worth of stocks on Monday via the Stock Connect. “The short-term foreign outflows, a rebalancing act of global asset allocation amid concerns over world economic growth, will not change the secular trend of foreign investors’ buying into A-shares,” domestic brokerage CITIC Securities said in a report.

The CSI300 financial sector sub-index was higher by 1.07 per cent, the consumer staples sector up 2.69 per cent, the real estate index up 1.71 per cent and the healthcare sub-index up 3.37 per cent. The smaller Shenzhen index ended up 0.9 per cent and the start-up board ChiNext Composite index was higher by 0.465 per cent.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.06 per cent, while Japan’s Nikkei index closed down 0.23 per cent. The largest percentage gainers on the main Shanghai Composite index were North China Pharmaceutical Co Ltd, up 10.1 per cent, followed by Chongqing Gangjiu Co Ltd, gaining 10.08 per cent and Jiangsu Lianyungang Port Co Ltd , up by 10.08 per cent.

The largest per centage losers on the Shanghai index were Beijing Airport High-Tech Park Co Ltd down 8.33 per cent, followed by Yangzhou Yaxing Motor Coach Co Ltd losing 8.2 per cent and Hunan Tyen Machinery Co Ltd down by 8.02 per cent.

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Author: Prakash Poojary

Business Analyst

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