SHANGHAI: China stocks gained on Monday after an upswing in consumer prices raised hopes of an economic recovery, while tech stocks led the Hong Kong market higher.
China’s blue-chip CSI300 Index ended up 1.3% while the Shanghai Composite Index edged 0.7% higher.
In Hong Kong, the Hang Seng Index gained 1.4%, with an index tracking tech stocks rising 2.9%.
China’s consumer prices rose for the first time in six months due to spending linked to the Lunar New Year, offering some reprieve for the world’s second-biggest economy grappling with weak consumer sentiment.
“Trade, tourism, and mobility data around Spring Festival, both during and after, hold promise,” DBS said in a note, cautioning though that “China has a long road to recovery ahead.”
Nomura said that the CPI inflation appears to have turned “more positive than what implied by holiday effects”.
During China’s parliamentary meeting, the government vowed to keep money supply and credit growth in step with the real GDP and inflation targets, signalling increased efforts to boost confidence.
Property shares rose 3.3% after news that Chinese regulators asked large banks to enhance financing support to developer China Vanke and asked private debt holders to discuss maturity extension. Vanke shares gained 3%.
The CSI New Energy Index jumped 5.7%, while an index tracking China’s green vehicles soared 6.8%.
China’s lithium industry would benefit from a stabilisation of prices of the battery metal, which is set for a long-term uptrend, said the chairman of Ganfeng Lithium, a major Chinese supplier.
But China’s coal stocks fell 3.2%. China’s coal imports are expected to be little changed or decline in 2024, officials from industries, state-run utilities and traders said on Friday.
Comments
Comments are closed for this article.