SHANGHAI: China’s blue-chip index extended gains to hit a five-and-half-year high on Tuesday, aided by jumps in consumer stocks, as investors hoped for more measures to spur the country’s consumption amid the coronavirus outbreak.
The blue-chip CSI300 index rose 1.9%, to 5,368.50, its highest since June 9, 2015, while the Shanghai Composite Index gained 0.7% to 3,528.68. Leading the gains, the CSI300 consumer staples index jumped 5.1%. The CSI300 healthcare index and materials index climbed 2.2% and 2.6%, respectively.
“Investors could pay attention to residents’ income recovery and measures to stimulate consumption in 2021, as China’s consumption recovery was relatively weak in 2020 amid the coronavirus outbreak,” Luo Kun, director of macro strategy centre at Chasing Securities, noted in a report. Analysts and traders also said investors became more bullish on hopes of more policy support and ample liquidity. China last year said it would maintain support for its economic recovery, avoiding a sudden shift in policy, to help keep growth within a reasonable range in 2021.
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