China shares end higher on consumer boost after strong export data

Reuters2021-07-13

* Shanghai Composite index +0.53%; CSI300 +0.18

* Consumer shares help CSI300 to shake off weakness

* Export data shows faster-than-expected growth in June

SHANGHAI, July 13 (Reuters) - China's blue-chips closed higher on Tuesday, supported by strong gains in consumer staples firms, as new data showed the country's exports grew at a much faster-than-expected pace in June on recovering global demand.

** Easing global lockdown measures drove China's June exports to grow much faster, and import growth also beat expectations, customs data showed on Tuesday.

** At the close, the Shanghai Composite index was up 0.53% at 3,566.52.

** The blue-chip CSI300 index shook off earlier weakness to end up 0.18%, with the consumer staples sector jumping 1.8%, the real estate index up 0.2% and the healthcare sub-index up 0.21%.

** The small gains extended a rally that pushed the CSI300 1.25% higher on Monday, after the central bank said it would cut banks' reserve requirement ratios $(RRR)$ from July 15.

** In a commentary on Tuesday, a former People's Bank of China official said the RRR cut could help authorities to deal with shifts in U.S. monetary policy and may relieve future downward pressure on the yuan, while noting that China's recovery remains imbalanced.

** Refinitiv data showed robust buying by foreign investors, with Northbound Stock Connect flows totalling 5.72 billion yuan ($884.81 million) on the day.

** The smaller Shenzhen index ended up 0.25% and the start-up board ChiNext Composite index was weaker by 0.56%.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.89%, while Japan's Nikkei index closed up 0.52%.

** The yuan was quoted at 6.4651 per U.S. dollar, 0.17% firmer than the previous close of 6.4762.

** So far this year, the Shanghai stock index is up 2.7% and the CSI300 has fallen 1.3%, while China's H-share index listed in Hong Kong is down 5.9%. Shanghai stocks have declined 0.69% this month.

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