BEIJING: China shares rose on Wednesday, with IT firms leading the gains, as investors cheered internet platform companies pledging to avoid anti-competitive behaviours after e-commerce giant Alibaba was fined a record $2.75 billion last week for such practices.
At the close, the Shanghai Composite index was up 0.6% at 3,416.72, while the blue-chip CSI300 index was up 0.83%.
The information technology sector added 1.38%, and the material sector gained 1.97%.
Shares of JD.com were set for their best session since April 1, after the Chinese e-commerce firm, along with 11 other internet platform companies, pledged to avoid anti-competitive behaviours such as forcing vendors to use their platform exclusively.
This is the first batch of the 34 companies including Tencent that were ordered by China’s market regulator to conduct self-inspections for illegal business behaviours on Tuesday, warning of “severe punishment” for any that still violated the rules.
Analysts say expectations of regulatory action had been largely priced in for internet companies before the fine, and the market uncertainty will be reduced.
China’s exports grew strongly in March on improving global demand as COVID-19 vaccinations progress, and import growth hit a four-year high, data showed on Tuesday, adding to signs of a solidifying recovery in the world’s second-largest economy.
The smaller Shenzhen index ended up 1.41% and the start-up board ChiNext Composite index was higher by 2.24%.
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