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China stocks rallied in late trading on Wednesday to rebound from their worst session in nearly three weeks thanks to Beijing‘s economic support measures, although gains were capped by worries over slowing growth in the COVID-hit economy.

The blue-chip CSI300 index rose 0.6% to 3,983.18, after dropping as much as 0.3% in morning trade, while the Shanghai Composite Index gained 1.2% to 3,107.46 points. Both the indexes fell more than 2% on Tuesday.

The Hang Seng index rose 0.3% to 20,171.27, while the China Enterprises Index gained 0.2% to 6,898.56.

** As COVID-19 outbreaks and stringent anti-virus measures take a toll on China, global investment banks have slashed their 2022 growth outlooks for the economy to as low as 3%, marking a huge discrepancy from the government’s target of around 5.5%.

** China’s financial regulators pledged to keep credit growth stable in the property sector and help homebuyers affected by virus outbreaks to defer mortgage payments, and the central bank said it would use various tools to appropriately increase credit and support economic growth.

** The capital Beijing further tightened its dragnet on the virus with zero community transmission the target. Nationwide, China reported 590 new coronavirus cases for Tuesday, down from 688 new cases a day earlier.

** Sentiment was improved in late trade, as local media including Caixin reported that China would hold a nationwide meeting with different levels of governments to stabilise the economy this afternoon.

** Energy and transport shares went up more than 2% each, while utilities stocks climbed 3.1%.

** Rising geopolitical tensions sapped risk appetite, as Russian and Chinese bombers flew joint patrols near Japanese and South Korea air defense zones on Tuesday in a pointed farewell to U.S. President Joe Biden as he concluded a trip to Asia that rankled Beijing.

** U.S. Secretary of State Antony Blinken will deliver a speech on Thursday outlining U.S. policy toward China, the State Department said.

** Tech giants listed in Hong Kong ended up 0.3% after falling as much as 1% in morning trade, with Alibaba Group down 1.5% ahead of its quarterly results on Thursday.

** “Significant issues remain” in reaching a deal with China over a audit dispute of China companies listed in the United States, a U.S. Securities and Exchange Commission (SEC) official said on Tuesday.

** China and the United States are committed to reach an arrangement on the audit inspection issue that is in line with legal and regulatory requirements for both sides, China’s securities regulator said on Wednesday.

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