BEIJING: China stocks end higher on Thursday, led by information technology, financial and consumer firms, as sentiment was lifted by government pledges to focus on a consumption recovery and reduce certain income tax rates.
At the close, the Shanghai Composite index was up 0.62% at 3,619.19 points, posting its biggest daily percentage gain since Dec. 21.
The blue-chip CSI300 index was up 0.8%, its best daily performance since Dec.9.
Among gaining sectors, information and technology stocks were up 1.7%, the media subindex surged by 5.4% and semiconductor shares added 2.6%. Consumer staples gained 0.8%.
China’s commerce ministry on Wednesday vowed to focus on the continued recovery of consumption in 2022.
The country also said it would extend some favourable income tax policies to ease the burden for middle- and low-income groups, state media reported, quoting a cabinet meeting chaired by Premier Li Keqiang.
The measure is expected to cut taxes by 110 billion yuan ($17.27 billion) a year.
Season-wise, analysts expect liquor, food and beverage sales to gain momentum during the upcoming new year and Chinese Spring Festival holidays, benefiting related sectors.