BEIJING/SHANGHAI: China shares ended higher on Wednesday, buoyed by optimism that policymakers would likely avoid sudden credit policy tightening in 2021 to support an economic recovery from the pandemic-induced slump.
At the close, the Shanghai Composite index was up 0.76% at 3,382.32, while the blue-chip CSI300 index was up 0.85%. The smaller Shenzhen index ended up 0.74%.
The start-up board ChiNext Composite index was higher by 1.11% while Shanghai’s tech-focused STAR50 index was up 1.32%.
Leading the gains, the new energy vehicle sub-index and the CSI300 industrials index rose 2.1% and 2.3%, respectively. China’s central bank will scale back support for the economy in 2021 and cool credit growth, but fears of derailing a recovery from a pandemic-induced slump and debt defaults are likely to prevent it from tightening any time soon, policy sources said.
China’s state planner said it would launch a nationwide inspection on the repayment risks for enterprise bonds that mature in the near term and in 2021.
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