China's blue-chip index closes higher on consumer shares; SMIC slumps

BEIJING/SHANGHAI: China's blue-chip index ended higher on Wednesday as optimism over the continued recovery in the world's second-largest economy lifted consumer stocks, offsetting weakness in the tech sector.

At the close, the Shanghai Composite index ended flat at 3,366.98, while its blue-chip CSI300 index was up 0.18%.

The consumer staples sector rose 1.08%, while the healthcare sub-index firmed 0.84%.

The start-up board ChiNext Composite index was higher by 0.065%, and Shanghai's tech-focused STAR50 index was down 1.32%?, dragged by heaviweight Semiconductor Manufacturing International Corp.

Shanghai-listed shares of SMIC slumped as much as 9.8% before they closed down 5.5% after the company said its board was aware of Mong-Song Liang's intention to resign from the CEO position.

The smaller Shenzhen index ended down 0.35%.

Broadly on the economic recovery front, analysts say activity and spending data released on Tuesday suggest that China's economy continued to accelerate across all fronts.

China's factory output grew at its fastest pace in 20 months in November, as revived consumer spending and a gradual easing of COVID-19 restrictions in major trading partners lifted demand for the country's manufactured goods.

"The economy will remain strong in the near term, as households run down the excess savings they accumulated this year," analysts at Capital Economics said in a note.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.26%, while Japan's Nikkei index closed up 0.26%.