Tuesday, May 24

Shanghai stocks rise on hopes of stimulus support; blue chips weigh

Article content

SHANGHAI — China’s blue chips fell on Tuesday, while the Shanghai Composite Index gained, after the authorities vowed to support the economy hit by the country’s worst domestic COVID-19 outbreak in two years.

The CSI300 index fell 0.4% to 4,150.28 by the end of the morning session, while the Shanghai index gained 0.1% to 3,199.30.

The Hang Seng index dropped 1.9% to 21,111.61. The Hong Kong China Enterprises Index lost 2.4% to 7,208.93.

** China will step up financial support for industries, firms and people affected by COVID-19 outbreaks, the central bank said on Monday.

Advertisement 2

Article content

** This came after data showed the economy slowed in March as consumption, real estate and exports were hit hard.

** “But the real growth bottlenecks remain,” Nomura said in a note. “Adjustments to China’s zero-COVID strategy are key to a growth recovery in coming months.”

** By mid-April, the PBOC had paid 600 billion yuan ($94.31 billion) in profits to the central government – ​​equivalent to a 25-basis points cut in banks’ reserve requirement ratios (RRR), the central bank said.

** Healthcare firms and semiconductors went down 2% and 2.5%, respectively, while energy stocks gained 2.4%.

** China’s state planner called for the implementation of policies to support the country’s catering and retail sectors, spending on new energy vehicles.

Advertisement 3

Article content

** Consumer staples edged up 0.3%, while new energy vehicles were flat.

** Hong Kong-listed tech giants, down 2.8%, led declines on the Hang Seng index, as trading resumed after a holiday.

** Video and livestreaming platform Bilibili Inc slumped roughly 10%, after China banned livestreaming of unauthorized video games on Friday.

** Food delivery giant Meituan plunged 4.7% after Shanghai’s market regulator said on Monday it had summoned 12 e-commerce platforms including Meituan and eleme.me over topics including price gouging during the pandemic.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)



Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.