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.


Reuters | Updated: 17-06-2021 10:21 IST | Created: 17-06-2021 10:17 IST
China stocks snap three sessions of losses, Hong Kong gains
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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.)

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