China shares rise as virus cases drop, auto stocks rally

China shares rose on Wednesday, boosted by automobile makers that gained on expectations of strong sales growth this year and easing concerns about COVID-19 outbreak after daily new cases dropped to their lowest in more than a month.

China shares rose on Wednesday, boosted by automobile makers that gained on expectations of strong sales growth this year and easing concerns about COVID-19 outbreak after daily new cases dropped to their lowest in more than a month. ** At the midday break, the Shanghai Composite index was up 0.2% at 3,540.65 and the blue-chip CSI300 index was up 0.51%. ** Leading the gains, the auto sector sub-index surged 5.5%, the rare earth sector gained 3.7% and the healthcare sub-index was up 2.13%.

** Chongqing Changan Automobile Co Ltd reported a growth of 87.2% in its January vehicle sales from a year ago, while the country's industry association forecast a 4% rise in total annual vehicle sales for 2021 at 26.3 million units. ** Meanwhile, China reported the fewest number of new COVID-19 cases for a single day in more than a month, the latest indication that the current wave of the disease is subsiding ahead of the Lunar New Year holidays.

** The smaller Shenzhen index was up 0.28%, the start-up board ChiNext Composite index was higher by 1.3% and Shanghai's tech-focused STAR50 index was down 0.41%​. ** Chinese H-shares listed in Hong Kong rose 0.03% to 11,612.25, while the Hang Seng Index was down 0.47% at 29,110.75. ** A sub-index of the Hang Seng index tracking energy shares rose 1.4%, while the IT sector added 1%.

** Alibaba Group Holding Ltd beat estimates for third-quarter revenue on a pandemic-driven jump in e-commerce, but its shares dropped 3.9% amid regulatory heat for founder Jack Ma's business empire. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.35% while Japan's Nikkei index was up 0.68%. ** The yuan was quoted at 6.4596 per U.S. dollar, down 0.05%.