SHANGHAI: China stocks closed higher on Tuesday, led by gains in financial and healthcare shares, after a private survey showed the country’s factory activity expanded in June. Hong Kong markets were shut for a local holiday.
China’s blue-chip CSI300 Index ended 0.2% higher, while the Shanghai Composite Index gained 0.4%.
China’s factory activity returned to expansion in June, supported by an increase in new orders that lifted production, a private sector survey showed on Tuesday.
Financial shares rebounded and led gains onshore, after falling for three straight sessions. The sector has outperformed the benchmark CSI 300 Index and is up 7% so far this year.
Financial stocks such as insurance and state-owned banks remain the preferred core holdings, as they offer defensive value in the short term and stand to benefit from yuan appreciation over the medium term, analysts at Huatai Securities said in a note.
Healthcare stocks rose 1.2% after Beijing unveiled measures to promote the high-quality development of the country’s innovative drug sector.
Artificial intelligence and real estate shares fell 0.9% each.
Mainland stocks were roughly flat in the first half of the year, with Chinese investors piling into Hong Kong shares, lured by lower valuations and the city’s strategic position in China’s growing rivalry with the United States.
Investors are closely monitoring the upcoming half-year earnings season for onshore stocks, starting in July, to gauge whether corporate fundamentals are showing signs of improvement.
Comments
Comments are closed for this article.