Chinese Shares Rise on Stimulus Hopes Amid US Trade Tensions; Guanghua Tech, Haitian Water Jump 10%

MT Newswires Live03-06

Chinese shares rose for a third straight day on Thursday, driven by increasing optimism regarding potential stimulus measures from Beijing, which overshadowed ongoing trade tensions between China and the US.

The Shanghai Composite Index climbed 1.2%, or 39.13 points, to finish Thursday's session at 3,381.10. The Shenzhen Component Index jumped 1.8%, or 189.29 points, to 10,898.75.

Investor confidence has been bolstered by the recent National People's Congress, where the government announced a 5% GDP growth target. This goal has fueled expectations of further economic support measures.

Market analysts are encouraged by indications from the conference that Beijing intends to lower borrowing costs and key rates, including the reserve requirement ratio.

In corporate news, Zhejiang Guanghua Technology (SHE:001333) closed 10% higher after announcing plans to build a subsidiary and factory in Thailand for $28 million.

Haitian Water Group (SHA:603759) also jumped 10% after winning a wastewater treatment plant construction project in China's Meishan High-tech Industrial Park for 332.5 million yuan.

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