SHANGHAI: China stocks rose to a one-month high on Friday, buoyed by signs of strong capital inflows, and hopes of improving ties between China and Europe. The Hong Kong market is closed for Good Friday.
The bluechip CSI300 Index closed up 0.7%, while the Shanghai Composite Index gained 0.5%. Both indexes touched their highest levels since March 7.
For the week, CSI 300 Index edged up 1.8%, while the Shanghai Composite Index climbed 1.7%.
Foreign investors ploughed money into Chinese stocks and bonds in March, latest data from the Institute of International Finance (IIF) showed.
Flows into Chinese stocks more than doubled from February to $7.2 billion, bringing total investment into Chinese equities this year to $30 billion, with the removal of COVID-19 restrictions still boosting markets, according to IIF.
The market was also aided by hopes of improvement in China-Europe ties following years of souring relationship.
European Union chief Ursula von der Leyen and French President Emmanuel Macron met Chinese President Xi Jinping in Beijing. In the closely-watched talks, Macron said the West must engage China to help end the Ukraine crisis and prevent “spiralling” tensions that could split global powers into warring blocs.
An index tracking artificial intelligence (AI) stocks rose 1.5%, as the sector remains buoyant after surges over the past month on the back of ChatGPT fever.
Property shares soared amid optimism of a gradual recovery of a sector pounded by Beijing’s deleveraging campaign. Healthcare stocks jumped 2.8%.
Shares of China International Capital Corp (CICC) jumped 5.7% in Shanghai. Sources told Reuters that dealmakers at the Chinese investment bank will see bonuses slashed by as much as 40%, which will potentially reduce cost and benefit shareholders.
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