China stocks post weekly gains on upbeat data, Beijing's reforms

  • Markets
  • Wednesday, 24 Jun 2020

SHANGHAI: China stocks ended higher on Wednesday to close the shortened three-session week on a firmer note, as investors cheered improving data from key economies and Beijing's latest reforms in its capital markets.

China's stock market will be closed on Thursday and Friday for the Dragon Boat Festival.

At the close, the Shanghai Composite index was up 0.3% at 2,979.55, while the blue-chip CSI300 index added 0.42%.

The start-up board ChiNext Composite index was unchanged.

For the week, SSEC gained 0.4%, while CSI300 rose 1%.

The start-up board index advanced 2.7% this week, logging its fifth straight weekly gain.

Investors have been paying more attention to Beijing's reforms in its capital markets, rather than to other factors, including the Sino-U.S. trade tensions and the coronavirus outbreak, which has been brought under control now, said Yan Kaiwen, an analyst with China Fortune Securities.

Also driving "risk-on" sentiment was data showing sales of new U.S. single-family homes increased more than expected in May and a slower-than-expected contraction of U.S. and European business activity last month.

The benchmark Shanghai index could be trading above the 3,000-level in the second half of 2020 following its revamp, Yan added.

China said it would revamp its benchmark equity index by introducing more high-tech strength and removing loss-making companies.

Chinese investors are redoubling bets on already pricey domestic technology shares, playing for reforms and stimulus in a sector key to Beijing's power rivalry with Washington.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.42%, while Japan's Nikkei index closed down 0.07%.

At 07:06 GMT, the yuan was quoted at 7.0665 per U.S. dollar, 0.13% weaker than the previous close of 7.0575. - Reuters

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