China stocks rise on hopes for policy support
Chinese shares rose on Tuesday, lifted by hopes for policy support to revive an economy emerging from lockdowns to curb the spread of the novel coronavirus.
** At the midday break, the Shanghai Composite index was 0.71% higher at 2,837.88 points.
** China’s blue-chip CSI300 index rose 0.78%, with its financial sector sub-index up 0.44%, the consumer staples sector up 0.01%, the real estate index up 0.24% and the healthcare sub-index up 1.54%.
** China will strengthen its economic policy and continue efforts to lower interest rates on loans, central bank Governor Yi Gang said, reinforcing expectations of further support measures to revive an economy ravaged by the pandemic.
** Analysts at Huarong Securities said in a note that, despite relatively high global uncertainty, they expect government policy to support livelihoods and guide rates lower, boosting the market and economy in the medium-to-long term.
** China’s banking and insurance regulator said bad loans at banks are at a high level and risks are relatively large, with smaller banks under pressure this year as credit risks continue to accumulate.
** Chinese H-shares listed in Hong Kong rose 1.57% to 9,614.31, while the Hang Seng Index was up 1.87% at 23,381.44.
** The smaller Shenzhen index was up 1.62% and the start-up board ChiNext Composite index was 2.48% higher.
** Around the region, MSCI’s Asia ex-Japan stock index was 1.60% firmer, while Japan’s Nikkei index gained 2.42%.
** The yuan was quoted at 7.133 per U.S. dollar, 0.04% firmer than the previous close of 7.1361.
** So far this year, the Shanghai stock index has declined 7.61%, while China’s H-share index has dropped 15.2%. Shanghai stocks have declined 1.47% this month.
(Reporting by Andrew Galbraith; Editing by Devika Syamnath)
Source : Reuters | Photocredit : Google