SHANGHAI: China stocks jumped on Monday after the week-long Lunar New Year holidays, as strong consumption and a rebound in travel during the break boosted investor sentiment.
China’s CSI 300 Index rose as much as 2.1% to touch a half-year high, while the Hang Seng Index retreated roughly 0.5% after two sessions of gains while Chinese markets were closed.
“Thanks to the rapid transition to herd immunity and the release of pent-up demand, there has been a notable recovery in in-person services consumption during the week-long holiday,” Nomura said in a note. Shares in new energy surged more than 3%, automobiles soared 5%, and consumer discretionary added 2.5% to lead the gains.
Official data showed Lunar New Year holiday trips inside China surged 74% from last year after authorities scrapped COVID-19 travel curbs, while almost a quarter more domestic Chinese tourism trips have been made during the holidays.
China stocks close higher as worst over in Covid battle
Yuekai Securities analysts said a steady recovery of consumption, a general rise in overseas markets during the holidays, and accelerated foreign inflows should help get Chinese-A shares off to a “good start” after the holiday.
China’s COVID situation also cheered investors, after the Center for Disease Control and Prevention said critically ill COVID-19 cases in China are down 72% from a peak early this month.
Foreign investors extended their buying spree in China stocks to a 14th session on Monday, with net purchases of more than 10 billion yuan ($1.48 billion) via the Stock Connect scheme.
Comments
Comments are closed.