China stocks rise as authorities vow to support economic growth

SHANGHAI: China stocks ended higher on Tuesday after the world's second-largest economy affirmed flexible policies next year to support growth, with new energy and non-ferrous metal shares leading the gains.

The blue-chip CSI300 index rose 0.7% to 4,955.96, while the Shanghai Composite Index gained 0.4% to 3,630.11.

** China will keep its monetary policy flexible next year, step up oversight of capital and platform companies, and steadily implement a management system for real estate financing, the central bank said on Monday.

** On the same day, the finance ministry said China will roll out fiscal policies proactively next year to stabilise economic growth, vowing that the impact of the drive would be felt earlier than usual.

** Dragging sentiment, however, China's local symptomatic coronavirus cases rose for a fourth consecutive day on Monday, with Xian city reporting more infections in a flare-up that has put 13 million residents under lockdown.

** New energy shares gained 2.6%, with new energy vehicles and the photovoltaic sector up 3% and 2.2%, respectively.

** Non-ferrous metal surged 2.9%, while machinery stocks gained 2%. Meanwhile, liquor makers added 1.1%.

** However, the energy subindex declined 2.1%, while construction engineering firms lost 1.2%.

** The decline tracks a drop in ferrous futures, on worries over a supply glut due to a likely recovery in production.