China shares end higher as c.bank governor boosts support hopes

China shares ended higher on Tuesday as investors cheered a pledge by the central bank to strengthen policies aimed at reviving an economy paralyzed by the coronavirus pandemic.

** At the close, the Shanghai Composite index was 1.01% higher at 2,846.55. It was the biggest one-day gain for the index since April 30.

** The blue-chip CSI300 index, up 1.13%, also saw its biggest one-day rise since April 30. The financial sector sub-index rose 0.6%, the consumer staples sector gained 0.1%, the real estate index added 0.7% and the healthcare sub-index finished 1.82% higher.

** China will strengthen its economic policy and continue efforts to lower interest rates on loans, central bank Governor Yi Gang said in an interview, adding that China's economic fundamentals remain unchanged despite many uncertainties.

** However, highlighting risks caused by the pandemic, China's banking and insurance regulator said bad loans at banks now stand at a high level, and that asset quality at smaller banks will be under pressure this year.

** The smaller Shenzhen index ended up 2.21% and the start-up board ChiNext Composite index was higher by 2.956%

. ** Around the region, MSCI's Asia ex-Japan stock index was 1.86% firmer, while Japan's Nikkei index closed up 2.55%.

** At 07:15 GMT, the yuan was quoted at 7.1338 per U.S. dollar, 0.03% firmer than the previous close of 7.1361.

** So far this year, the Shanghai stock index has fallen 6.7% and the CSI300 has declined 5.5%, while China's H-share index listed in Hong Kong has dropped 13.8%. Shanghai stocks have declined by 0.47% this month.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)