China stocks snap three sessions of losses, Hong Kong gains

** The gains came after a three-day losing streak, with the CSI300 falling the most in two months on Wednesday. ** Growth in China's factory output slowed for a third straight month in May, likely weighed down by disruptions caused by COVID-19 outbreaks in the country's southern export powerhouse of Guangdong.

China stocks rose on Thursday after three straight sessions of losses as downbeat factory output data eased fears of policy tightening in the world’s second-largest economy.

** The CSI300 index rose 0.3%, to 5,096.38 points at the end of the morning session, while the Shanghai Composite Index gained 0.2%, to 3,524.31 points. ** The gains came after a three-day losing streak, with the CSI300 falling the most in two months on Wednesday.

** Growth in China's factory output slowed for a third straight month in May, likely weighed down by disruptions caused by COVID-19 outbreaks in the country's southern export powerhouse of Guangdong. ** The U.S. Federal Reserve on Wednesday began closing the door on its pandemic-driven monetary policy as officials projected an accelerated timetable for interest rate increases, opened talks on how to end crisis-era bond-buying.

** Concerns over domestic valuations remained a focal point for investors. ** "The root cause for the recent correction was high valuations, as many Chinese institutional investors switched out of expensive stocks to prepare for a year-end ranking," said Dong Baozhen, chairman of Beijing-based private securities fund Lingtong Shengtai Investment Management.

** "There is co-existence of extremely high valuations and extremely low valuations in the A-share market, which needs to be corrected," he said. ** New energy vehicle companies, leading healthcare firms and liquor stocks, long seen as bets with frothy valuations, witnessed sharp corrections in the past few days.

** The CSI new energy vehicles index jumped 2.6% on Thursday after tumbling 6.4% on Wednesday, while the CSI300 healthcare index firmed 1% after losing ground for three consecutive sessions. ** In Hong Kong, the Hang Seng index added 0.3% to 28,516.97 points, while the Hong Kong China Enterprises Index gained 0.2% to 10,585.37.

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