China stocks rise as tech-focused STAR Board shines on policy support

Reuters2021-07-05

Shanghai, July 5 (Reuters) - China's major indexes eked out gains on Monday, helped by robust strength in Shanghai's tech-focused STAR Board companies, as Beijing pledged continued policy support for its tech sector.

** The blue-chip CSI300 index edged up 0.1% to 5,085.79, while the Shanghai Composite Index added 0.4% to 3,534.32.

** Shenzhen's start-up board climbed 0.5%, while Shanghai's tech-focused STAR50 index gained 2.5%.

** Advanced Micro-Fabrication Equipment Inc China jumped as much as 12% before closing 7.4% higher, after China's state integrated circuit fund participated in the company's private placement.

** Six of China's ministries including Ministry of Industry and Information Technology pledged on Friday to foster outstanding manufacturers and support qualified companies to get financing from the capital markets.

** Though investors turned cautious after a slump on Friday, when major indexes fell the most in four months amid growth concerns.

** "Most of (China's) broad-based indices and industry indices now stand at the end of a rising trend, and the stock rally since the first quarter could have ended, leading to a potential correction going forward," Essence Securities noted in a report.

** A private survey showed on Monday that growth in China's services sector slowed sharply in June to a 14-month low, weighed down by a resurgence of COVID-19 cases in southern China, adding to concerns the world's second-largest economy may be starting to lose some momentum.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.01%, while Japan's Nikkei index closed down 0.64%.

** At 0731 GMT, the yuan was quoted at 6.4617 per U.S. dollar, 0.16% firmer than the previous close of 6.472.

** As of 0732 GMT, China's A-shares were trading at a premium of 39.15% over the Hong Kong-listed H-shares.

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