Consumer firms lift China shares as export growth beats forecasts

Shanghai shares rose on Tuesday on strong gains in consumer staples firms, as new data showed China's exports grew at a much faster-than-expected pace in June on recovering global demand. ** Easing global lockdown measures drove China's June exports to grow much faster, and import growth also beat expectations, customs data showed on Tuesday.

Shanghai shares rose on Tuesday on strong gains in consumer staples firms, as new data showed China's exports grew at a much faster-than-expected pace in June on recovering global demand. ** Easing global lockdown measures drove China's June exports to grow much faster, and import growth also beat expectations, customs data showed on Tuesday. ** At the midday break, the Shanghai Composite index was up 0.24% at 3,556.27 points. China's blue-chip CSI300 index was down 0.05% at the midday break, a day after rising 1.25% on a central bank announcement that it would cut banks' reserve requirement ratios (RRR). ** In a commentary on Tuesday, a former People's Bank of China official said the RRR cut could help authorities to deal with shifts in U.S. monetary policy and may relieve future downward pressure on the yuan while noting that China's recovery remains imbalanced. ** The CSI consumer staples sector rose 1.75% and the real estate index added 0.4%. ** Refinitiv data showed foreign investors were net buyers on the day, with Northbound Stock Connect flows totaling 4.257 billion yuan ($658.53 million) by midday. ** Chinese H-shares listed in Hong Kong rose 2.15% to 10,159.95, while the Hang Seng Index was up 1.86% at 28,027.48. ** Tech firms in Hong Kong drove gains, with the Hang Seng Tech index rising 2.72%. ** Tencent Holdings Ltd jumped 5.05% after China's antitrust regulator on Tuesday approved its plan to take the country's no.3 search engine Sogou Inc private in a $3.5 billion deal. ** The smaller Shenzhen index was down 0.14%, the start-up board ChiNext Composite index was weaker by 1% and Shanghai's tech-focused STAR50 index was down 1.07%​. ** The yuan was quoted at 6.465 per U.S. dollar, 0.17% firmer than the previous close of 6.4762.