BEIJING/SHANGHAI: China shares ended higher for a second consecutive day on Wednesday, as consumers and healthcare stocks gained amid hopes of further economic recovery from the pandemic.
At the close, the Shanghai Composite index was up 0.46% at 3,269.24. The blue-chip CSI300 index was up 0.81%, with its consumer staples sector 2.24% higher, and the healthcare sub-index rose 1.13%.
The smaller Shenzhen index ended up 0.89%, the start-up board ChiNext Composite index increased 0.74%, and Shanghai’s tech-focused STAR50 index jumped 1.47%.
Mainland shares are accumulating momentum this week as investors are expecting further economic recovery and new listings of fintech shares such as Alibaba’s Ant Group, said Yang Delong, investment manager at First Seafront Fund Management Co.
A Reuters poll forecast China’s fourth-quarter GDP rising 5.8% year-on-year, up from 4.9% reported in the July-September period as economic recovery accelerated in the third quarter after consumers shook off their coronavirus caution.
Investors are also fishing for food and beverage stocks sold in previous sessions due to lower-than-expected quarterly results, according to Yang.
But market’s liquidity will be tested by the upcoming blockbuster Ant IPO and investors are likely to lock in more profits from blue-chip property and financial shares, said Zhang Qi, analyst with Haitong Securities Co.
Investors shrugged off news of a resurgence in coronavirus infections in the northwestern Xinjiang region. China reported 42 new Covid-19 cases on Oct. 27, the highest daily toll in more than two months.—Reuters
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