- Investors purchased a net 8.3 billion yuan ($1.30 billion) worth of A-shares through the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.
SHANGHAI: China stocks firmed on Thursday, hovering near a three-month high, as subdued industrial data calmed worries over policy tightening, while some positive signs on Sino-US relations further boosted sentiment.
The CSI300 index was unchanged at 5,322.40 at the end of the morning session, while the Shanghai Composite Index gained 0.2% to 3,599.81, its highest since Feb. 24.
Analysts and traders said a series of recent soft economic data helped assuage policy tightening fears which had weighed on valuations of equities and risk appetite.
Data showed earnings at China's industrial firms grew at a slower pace in April, with high commodity prices and weaker performance in the consumer goods sector limiting overall profitability from manufacturing.
"Micro liquidity conditions have improved in the A-share market, with the launch of new mutual funds picking up," said Yan Kaiwen, an analyst with China Fortune Securities.
Yan added the strong stock rally would further attract more money inflows via the mutual funds in June, forecasting the Shanghai index to test the 3,800-point level this year.
So far this week, CSI300 gained 3.7%, while SSEC advanced 3.2%.
Foreign inflows continued to prop up the market thanks in part to a buoyant yuan touching a three-year high.
Investors purchased a net 8.3 billion yuan ($1.30 billion) worth of A-shares through the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.
Market participants also kept an eye out on the latest headlines on Sino-US relations.
China and the United States agreed that the development of bilateral trade is very important, China's commerce ministry said, adding that both sides exchanged views on issues of mutual concern.
The Hang Seng index dropped 0.3%, to 29,078.02, while the Hong Kong China Enterprises Index lost 0.4%, to 10,810.55.