SHANGHAI: Chinese stocks advanced for a fourth session on Friday, after data showed profits at industrial firms extended gains in September while policy measures helped sentiment.
The blue-chip CSI 300 Index gained 1.4% and the Shanghai Composite Index added 1% at close.
Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index both finished roughly 2% higher.
For the week, the CSI 300 was up 1.5%, while the Hang Seng added 1.3%.
Global shares rose after data showed the US economy was growing robustly and traders awaited a US core inflation report later in the session that may show price pressures are continuing to abate.
Profits at China’s industrial firms extended gains for a second month in September, adding to signs of a stabilising economy as authorities launched a burst of supportive policy measures.
More than 30 Chinese listed companies vowed to buy back shares or increase stakes in their firms late on Thursday. Firms have spent more than 10 billion yuan ($1.37 billion) in buybacks so far in October, state media Securities Times reported.
Foreign investors bought a net 4.6 billion yuan ($628.6 million) of Chinese shares via the Stock Connect on Friday, the biggest purchase in two weeks.
Electric vehicle battery maker Contemporary Amperex Technology rose 3.7% after Chairman Robin Zeng proposed to buy back shares worth 2 billion-3 billion yuan. The new energy sector jumped 3.8%.
Shares in healthcare surged 4.8%, and automobiles added 1.8%. Tech giants listed in Hong Kong also rose 2.5%.
There tend to be a lot of buybacks when market is near the bottom, and the market had fully priced in various pessimistic scenarios, said Yang Delong, chief economist at First Seafront Fund Management.
On the geopolitical front, China’s top diplomat Wang Yi said on Thursday the United States and China need “in-depth” and “comprehensive” dialogue to reduce misunderstandings and stabilize bilateral relations.
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