SHANGHAI: China stocks rebounded in afternoon trading to close higher on Tuesday, as hopes of easing in COVID-19 curbs in some pilot areas lifted tourism and consumer goods sectors, while expectations of policy support for the economy lifted sentiment.
The blue-chip CSI300 index ended 2.0% higher at 4,179.97, while the Shanghai Composite Index gained 1.5% to 3,213.33 points.
The Hang Seng index rose 0.5% to 21,319.13, while the China Enterprises Index gained 0.8%, to 7,264.43 points. Tourism stocks surged 8.4%, transport firms soared 5.1%, while consumer staples added 3.9%.
An unverified document about picking pilot regions, including Shanghai, for relaxed quarantine requirements is circulating and traders say it pushed up related sectors.
New bank lending in China rose more than expected in March, while broad credit growth accelerated from the previous month.
“Strong credit supply is helpful, but the economy will likely stay weak with many cities under lockdown,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that the COVID-19 outbreaks.”
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