China: Blue chips end higher as industrials, financials gain

[SHANGHAI] China's blue-chip stock index ended higher on Thursday (Dec 16) as gains in industrial and financial sectors offset weakness in consumer staples firms, while energy shares rose thanks to strong oil and coal prices.

At the close, the Shanghai Composite index was up 0.75 per cent at 3,675.02 points.

The blue-chip CSI300 index was up 0.58 per cent, overcoming small losses earlier in the day.

The consumer staples sector ended 0.92 per cent lower amid concern over a resurgence of Covid-19 cases, but those losses were outweighed by a 0.78 per cent gain in the financial sector and a 1.23 per cent rise in industrial shares

An index tracking the coal sector surged 6.27 per cent amid a government crackdown on illegal mining that has lifted prices, while a broader energy index added 5 per cent.

The smaller Shenzhen index ended up 0.53 per cent and the startup board ChiNext Composite index was 0.742 per cent higher.

Also in positive territory were A-shares of Chinese companies that were reported on Wednesday to be on the verge of being added to US investment and export blacklists.

China's Leon Technology Co soared by the daily limit of 20 per cent after the company downplayed a report it would be added to the investment blacklist. Xiamen Meiya Pico Information Co rose 5.06 per cent and NetPosa Technologies added 2.93 per cent.

So far this year, the Shanghai stock index is up 5.8 per cent and the CSI300 has fallen 3.4 per cent, while China's H-share index listed in Hong Kong is down 22.7 per cent. Shanghai stocks have risen 3.12 per cent this month.

As at 0700 GMT, China's A-shares were trading at a premium of 48.37 per cent over Hong Kong-listed H-shares.

REUTERS