China stocks end higher as inflation fears ease

Reuters2021-06-10

SHANGHAI, June 10 (Reuters) - China stocks ended higher on Thursday, as regulators played down inflation worries and as Sino-U.S. talks helped underpin sentiment.

The blue-chip CSI300 index rose 0.7%, to 5,271.47, while the Shanghai Composite Index gained 0.5%to 3,610.86.

The tech-heavy start-up board ChiNext rose 2.4%, while Shanghai's tech-focused STAR50 index added 1.6%.

China's central bank governor said inflation is "basically under control", and monetary policy would be kept steady, in comments a day after concerns over inflationary pressures were fanned by data showing the fastest rise in factory-gate prices in 12 years.

Analysts said the market would be stable as a whole as Beijing vowed policy stability.

Small- and medium-cap sectors performed well, as market participants favour growth stocks due to relatively friendly liquidity conditions at home and continued loose liquidity abroad, Vanho Securities said in a report.

A strong yuan also helps bring more foreign inflows to the country's equities market, the brokerage added.

Investors on Thursday purchased 9.5 billion yuan ($1.49 billion) worth of A-shares via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.

Sino-U.S. talks also helped lift sentiment.

Top U.S. and Chinese commerce officials spoke by telephone and agreed to promote healthy trade and cooperate over differences, China's commerce ministry said on Thursday, the latest high-level exchange as the countries spar over disagreements.

Shares in Chinese companies, which have business cooperation with TikTok, climbed after U.S. President Joe Biden withdrew a series of Trump-era executive orders that sought to ban new downloads of WeChat and TikTok.

Bucking the broad strength, developers fell after the country's top banking and insurance regulator warned of bubbles in the real-estate sector.

($1 = 6.3839 Chinese yuan renminbi)

(Reporting by Shanghai Newsroom;Editing by Elaine Hardcastle)

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Comments

  • Kikiooi
    2021-06-10
    Kikiooi
    Hope the same news from US to, any comment? 
  • kevinlaisq
    2021-06-10
    kevinlaisq
    Please comment and like
  • kyawswar
    2021-06-10
    kyawswar
    Yeah [Smile] 
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