SHANGHAI: Chinese stocks rose on Friday and were on track for a fourth session of advance, after data showed profits at industrial firms extended gains in September, while policy measures also helped sentiment.
** The blue-chip CSI 300 Index gained 0.6% and the Shanghai Composite Index added 0.4% by the midday recess.
** Hong Kong’s Hang Seng Index rose 1% and the Hang Seng China Enterprises Index climbed 0.9%.
** The broader Asian share market tracked Wall Street futures higher, as Amazon provided some welcome earnings relief, while bonds were able to sustain a rally amid signs US inflation was easing.
** Profits at China’s industrial firms extended gains for a second month in September, adding to signs of a stabilising economy as authorities launched a burst of supportive policy measures.
China stocks rebound, HK shares fall as sentiment weak
** More than 30 Chinese listed companies vowed to buy back shares or increase stakes in their firms late on Thursday. Firms have spent more than 10 billion yuan ($1.37 billion) in buybacks so far in October, state media Securities Times reported.
** Electric vehicle batterymaker Contemporary Amperex Technology rose 2.2% after Chairman Robin Zeng proposed to buy back shares worth 2 billion-3 billion yuan. The new energy sector jumped 2.2%.
** Shares in healthcare and automobiles also surged more than 2% each.
** There tend to be a lot of buybacks when market is near the bottom, and the market had fully priced in various pessimistic scenarios, said Yang Delong, chief economist at First Seafront Fund Management.
** On the geopolitical front, China’s top diplomat Wang Yi said on Thursday the United States and China need “in-depth” and “comprehensive” dialogue to reduce misunderstandings and stabilize bilateral relations.
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