China stocks end higher on optimism over Beijing's pledge to support recovery

China shares ended higher on Wednesday, buoyed by optimism that policymakers would likely avoid sudden credit policy tightening in 2021 to support an economic recovery from the pandemic-induced slump. ** At the close, the Shanghai Composite index was up 0.76% at 3,382.32, while the blue-chip CSI300 index was up 0.85%.

China shares ended higher on Wednesday, buoyed by optimism that policymakers would likely avoid sudden credit policy tightening in 2021 to support an economic recovery from the pandemic-induced slump. ** At the close, the Shanghai Composite index was up 0.76% at 3,382.32, while the blue-chip CSI300 index was up 0.85%. The smaller Shenzhen index ended up 0.74%.

** The start-up board ChiNext Composite index was higher by 1.11% while Shanghai's tech-focused STAR50 index was up 1.32%​. ** Leading the gains, the new energy vehicle sub-index and the CSI300 industrials index rose 2.1% and 2.3%, respectively. ** China's central bank will scale back support for the economy in 2021 and cool credit growth, but fears of derailing a recovery from a pandemic-induced slump and debt defaults are likely to prevent it from tightening any time soon, policy sources said.

** China's state planner said it would launch a nationwide inspection on the repayment risks for enterprise bonds that mature in the near term and in 2021. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.05%, while Japan's Nikkei index closed up 0.33%. ** At 07:20 GMT, the yuan was quoted at 6.537 per U.S. dollar, 0.09% firmer than the previous close of 6.5429.