SHANGHAI: China stocks closed up on Wednesday, tracking global markets on a dovish tone from US Federal Reserve policymakers, while a media report saying Beijing is preparing a new stimulus to help meet this year’s official growth target lifted sentiment.
The blue-chip CSI 300 Index climbed 0.3% and the Shanghai Composite Index added 0.1% at market close. Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index both advanced 1.3%.
Asian stocks rose following overnight gains in the Wall Street, and the dollar beat a retreat as a dovish shift in tone from Fed officials had traders paring US interest rate expectations, though with a wary eye on US inflation data due on Thursday.
China is considering raising its budget deficit for 2023 as the government prepares to unleash a new round of stimulus to help the economy meet the official growth target, Bloomberg News reported on Tuesday.
The report comes as China saw mixed holiday tourism data and signs of economic recovery gradually stabilising.
Shares in healthcare, artificial intelligence , and communications rose between 1.6% and 2.2% to lead the gains. Meanwhile, aviation defense, energy and tourism firms dropped between 1.1% and 1.8%.
There were also improving signs on the geopolitical front. China’s commerce minister, Wang Wentao, and US senators led by Senate Majority Leader Chuck Schumer held “rational and pragmatic” discussions on Monday, the Chinese commerce ministry said.
** Tech conglomerates listed in Hong Kong rose 2%.
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