SHANGHAI: China shares climbed more than 1% on Tuesday, underpinned by gains in new energy and healthcare stocks, as investors cheered upbeat corporate earnings.
The blue-chip CSI300 index rose 1.0%, to 5,094.73, while the Shanghai Composite Index added 0.6 to 3,456.68. Both indexes were up for a third straight session.
Leading the gains, the CSI300 new energy index and the CSI300 healthcare index rose 2.1% and 1.7%, respectively.
Chinese electric vehicle maker BYD Co Ltd, which is backed by billionaire Warren Buffett, on Monday reported a 162% growth in 2020 net profit as it became a major mask maker during the COVID-19 pandemic.
But analysts said market sentiment remained weak and investors should not pin too much hope on the sustainability of the rally.
For now, it’s more of a rebound following the recent market corrections, Huaxi Securities analysts said in a report, adding that cyclical blue-chip firms with low valuations and good cash conditions are relatively safe for investors.
The Sino-UStensions and expectations of liquidity tightening had curbed risk appetite in the A-share market, while the US Treasury yields could rise to about 2% in the future, limiting the market rebound, the brokerage added.
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