SHANGHAI: China stocks closed up on Monday, as markets played catch-up with last week's gains in global equities and rebounded from sharp sell-offs seen before the week-long Lunar New Year holiday.
The blue-chip CSI300 index rose 1.5% to 4,634.09, while the Shanghai Composite Index gained 2% to 3,429.58 points.
** China's market liquidity will remain reasonably ample even as seasonal flows of money injected ahead of the Lunar New Year holiday are recouped, the official Shanghai Securities News said on Monday.
** The CSI Construction Engineering Index and the infrastructure sub-index jumped 6.2% and 4.6% respectively, after China's state planner said it would accelerate the construction of new infrastructure.
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** The National Development and Reform Commission also said more efforts would be made to expand domestic demand, China Daily reported.
** Banks added 3.3%, energy shares surged 4.9%, and automobiles rose 2.8%.
** Tourism stocks reversed earlier losses and edged up 0.2%, while media stocks lost 0.8%, as tourism revenues and box office sales during the holiday both disappointed.
** "Despite a nearly 48% increase in the number of people returning to their hometowns for the Lunar New Year holiday compared to last year, a contraction in movie box office sales and tourism revenues - due perhaps to the worsening economy - suggests that this did not result in materially higher consumption demand," said Nomura in a note.
** Activity in China's services sector in January expanded at the slowest pace in five months, as a surge in local COVID-19 cases and containment measures hit new business and consumer sentiment.
** Nomura added that they expect to see more real and more supportive measures only after the annual National People's Congress conference in early March.
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