Find out more at btsub.sg/promo
You are here
China: Stocks end sharply up on policy stimulus bets
[SHANGHAI] China stocks surged on Thursday with the Shanghai index experiencing its biggest daily rise since Jan 5, as investors bet on an increased chance of policy stimulus after disappointing bank loan data. "Investor sentiment has stablised and the market strengthened on reports from large investment banks that the government will loosen policy," said Li Zheming, an analyst at Datong Securities.
Chinese banks extended far less credit in December than expected despite a surprise interest rate cut by the central bank.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.9 per cent, to 3,604.12, while the Shanghai Composite Index gained 3.5 per cent, to 3,336.45 points.
Trading volumes recovered slightly after a few days of lacklustre performance earlier in the week.
Among the most active stocks in Shanghai were Bank Of China , up 6.3 per cent to 4.88 yuan; Agricultural Bank of China, up 3.8 per cent to 3.87 yuan and CITIC , up 2.2 per cent to 33.39 yuan.
In Shenzhen, Guosen Securities, up 10.0 per cent to 23.97 yuan; Vanke, up 5.1 per cent to 13.77 yuan and TCL Corp, up 1.0 per cent to 3.97 yuan were among the most actively traded.
Foreign investment flowing into Shanghai from Hong Kong through the mutual market access pilot programme took up 1.01 billion yuan of the 13 billion yuan daily quota.
Total volume of A shares traded in Shanghai was 28.2 billion shares, while Shenzhen volume was 12.6 billion shares.