China stocks rise as STAR Market shines on ETF approval, upbeat data

China stocks finished higher on Monday with Shanghai's Nasdaq-style STAR Market leading gains after securities regulator approved the first batch of exchange-traded funds (ETFs), which are expected to draw fresh funds towards the market.


Reuters | Shanghai | Updated: 14-09-2020 13:22 IST | Created: 14-09-2020 13:06 IST
China stocks rise as STAR Market shines on ETF approval, upbeat data
Representative image Image Credit: Twitter (@IMFNews)
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China stocks finished higher on Monday with Shanghai's Nasdaq-style STAR Market leading gains after securities regulator approved the first batch of exchange-traded funds (ETFs), which are expected to draw fresh funds towards the market. ** Analysts said investor sentiment was also supported by recent upbeat economic data, suggesting broad economy was bouncing from the coronavirus shock faster than expected. ** Shanghai's tech-focused STAR50 index was up 2.7%​, while the start-up board ChiNext Composite index was higher by 1.4%. ** China Asset Management Co (ChinaAMC), E Fund Management Co and Huatai-PineBridge Fund Management Co said in separate notes on Friday that they had received regulatory approval to launch ETFs tracking the benchmark STAR50 index.

** The Shanghai Composite index was up 0.57% at 3,278.81. The blue-chip CSI300 index closed 0.51% higher. ** Sentiment was improved by encouraging economic data that showed the world's second-largest economy was on track recovering from the oronavirus crisis. New home prices in China rose at a slightly faster monthly pace in August, as consumer demand showed signs of picking up.

** Chinese banks extended more new loans in August than expected, while broad credit growth quickened, pointing to continued policy support as the economy recovers from a record coronavirus-induced slump. ** Financial sector climbed up marginally after China has issued new rules to regulate financial holding companies, in its latest move to prevent systematic risks to the nation's vast financial sector.

** Developments in the Sino-U.S. tensions remained one of the key market focus. Sources told Reuters that ByteDance abandoned the sale of TikTok in the United States on Sunday in pursuit of a partnership with Oracle Corp that it hopes will spare it a U.S. ban while appeasing China's government. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.47%, while Japan's Nikkei index closed up 0.65%.

** The largest percentage gainers in the main Shanghai Composite index were Zhejiang Orient Financial Holdings Group Co Ltd , up 10.08%, followed by Lanpec Technologies Ltd , gaining 10.06% and WPG (Shanghai) Smart Water Public Co Ltd, up by 10.02%. ** So far this year, the Shanghai stock index is up 7.5% and the CSI300 gained 13.5%, while China's H-share index listed in Hong Kong is down 12%. Shanghai stocks have declined 3.44% this month.

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

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