China stocks end higher as country's GDP hits record growth

Reuters2021-04-16

SHANGHAI, April 16 (Reuters) - China stocks ended higher on Friday, as investors cheered robust GDP growth recorded in the first quarter, though lingering worries over policy tightening by Beijing pushed equities to post a weekly loss.

The blue-chip CSI300 index ended up 0.4% at 4,966.18, while the Shanghai Composite Index added 0.8%to 3,426.62.

China's economic recovery quickened sharply in the first quarter from a coronavirus-induced slump earlier last year, propelled by stronger demand at home and abroad and continued government support for smaller firms.

The country's GDP jumped a record 18.3% in the first quarter from a year earlier, official data showed on Friday, slower than the 19% forecast by economists in a Reuters poll, and following 6.5% growth in the fourth quarter last year.

"The GDP data is a bit better than my expectations, while the robust corporate earnings for the year of 2020 and the first quarter of 2021 could also help provide support for the A-share market," said Yan Kaiwen, an analyst with China Fortune Securities.

Though stocks lost ground for the week on persistent worries that recent upbeat economic data could reinforce Beijing's policy tightening bias, even as Beijing had pledged no sudden policy shift. The CSI300 dropped 1.4%, while SSEC slipped 0.7%.

Also souring sentiment were ongoing tensions between Beijing and Washington.

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Comments

  • VickJW
    2021-04-16
    VickJW
    Cool comment
  • KinKat
    2021-04-16
    KinKat
    Q120 was the worst period in China, with Wuhan & several Chinese cities under lockdown. That provided the low base for Q121's big jump YoY. On a QoQ basis, it only grew +0.6%, https://www.msn.com/en-us/money/markets/chinas-economy-grew-a-record-183-in-the-first-quarter-but-that-number-doesnt-tell-the-whole-story/ar-BB1fIbIq?ocid=uxbndlbing
  • leongsiak
    2021-04-16
    leongsiak
    People willing to spend more money[賤笑] 
  • T3M1N4T0R
    2021-04-16
    T3M1N4T0R
    Interesting read!
  • GoaOn
    2021-04-16
    GoaOn
    Strong
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