SHANGHAI: China stocks rose on Friday, tracking gains in global markets as commodity prices fell, after the People’s Bank of China (PBOC) infused fresh capital into the banking system to keep liquidity stable.
The CSI300 index rose 0.6% to 4,368.23 at the end of the morning session, while the Shanghai Composite Index gained 0.4%, to 3,334.67 points.
China, Hong Kong shares fall on softer economic outlook
The Hang Seng index added 1.5% to 21,583.03, while the Hong Kong China Enterprises Index gained 1.7% to 7,589.37.
** For the week, the CSI300 Index rose 1.4%, while the Hang Seng Index added 2.4%.
** The PBOC injected 60 billion yuan ($8.96 billion) worth of seven-day reverse repos, as demand for cash for the end of the first half of the year started to pick up.
** Global equity markets rose, as commities including copper and oil dropped, offering a salve for inflation fears.
** Chinese battery giant CATL jumped 4% as it will start mass production next year of its latest generation product, with greater efficiency that lets electric cars drive longer distances on each charge.
** Shares in new energy and defence companies went up 1.9% and 2.8%, respectively. ** Healthcare firms listed in China gained 2.3%, while peers trading in Hong Kong surged nearly 5%.
** “After a swift rebound led by the reopening theme and high-beta stocks/laggards recently, we expect the market to consolidate in the next two months on a mild economic recovery and earnings downgrades,” said Meng Lei, China equities strategist at UBS Securities, as the CSI300 has risen roughly 15% since a trough in late April.
** He added market pullback in the next two months would likely provide an attractive opportunity and a more material valuation re-rating from late Q3, when broad estimate cuts potentially come to an end.
** Tech giants listed in Hong Kong were up 3%, with e-commerce giant Alibaba jumped 5.5% amid hints that China’s technology crackdown is abating.
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