SHANGHAI: Shanghai stocks rose on Monday to close at two-month highs, 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 blue-chip CSI300 index rose 1.9% to 4,166.09, the highest level in 7 weeks, while the Shanghai Composite Index gained 1.3% to 3,236.37 points, the highest since April 8.
Chinese stocks rise on stimulus, Shanghai reopening
** Beijing will further relax COVID curbs by allowing indoor dining, while Shanghai has lifted most of the restrictions 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.
** The US 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 is still below the 50-point mark that separates growth from contraction.
** The tech-focused STAR Market added 3.9%, 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 5.2%, with new energy vehicles surging 5.6% and photovoltaic firms up 4.6%.
** President Biden will declare a 24-month tariff exemption on Monday for solar panels from four Southeast Asian nations after an investigation froze imports and stalled projects in the United States, sources told Reuters.
** 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% so far, respectively.
** However, the CSI 300 Real Estate Index lost more than 2%.
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