China shares edge higher as economic recovery continues

SHANGHAI: China shares rose on Monday, rebounding from the previous week's drop, after growing factory activity in January underscored a continued recovery in the world's second-largest economy, although fresh domestic lockdowns hit pace of growth.

At the midday break, the Shanghai Composite index was up 0.1% at 3,486.46 points.

China's blue-chip CSI300 index had risen 0.52%, with its financial sector sub-index higher by 0.32%, the consumer staples sector up 0.33%.

The healthcare sub-index rebounded 1.86% after losing nearly 7% between Monday and Friday.

China's factory activity grew in January, in line with the country's ongoing economic recovery, but it was the slowest pace of growth in five months after a wave of domestic coronavirus infections prompted lockdowns.

Companies engaged in silver mining and trade jumped as the price of the precious metal rallied.

Shengda Resources Co Ltd , Yintai Gold Co Ltd, Henan Yuguang Gold & Lead Co Ltd and Inner Mongolia Xingye Mining Co Ltd gained between 7% and 10%.

But shares in listed companies linked to China's HNA Group slumped on Monday, after the troubled conglomerate disclosed that its creditors had applied for its bankruptcy and that nearly $10 billion had been embezzled by shareholders of its three units.

Hainan Airlines dropped 9.8% and HNA Innovation fell 4.97%.

Chinese H-shares listed in Hong Kong rose 2% to 11,433.31, while the Hang Seng Index, which lost nearly 4% last week, was up 1.91% at 28,822.61.

The smaller Shenzhen index was up 0.62%, the start-up board ChiNext Composite index was higher by 1.15% and Shanghai's tech-focused STAR50 index was down 0.41%?.

The yuan was quoted at 6.4605 per US dollar, 0.47% weaker than the previous close of 6.43.