China stocks end higher on hopes of policy easing, relaxation in curbs

China stocks rebounded in afternoon trading to close higher on Tuesday, as hopes of easing in COVID-19 curbs in some pilot areas lifted tourism and consumer goods sectors, while expectations of policy support for the economy lifted sentiment. The blue-chip CSI300 index ended 2.0% higher at 4,179.97, while the Shanghai Composite Index gained 1.5% to 3,213.33 points.

China stocks rebounded in afternoon trading to close higher on Tuesday, as hopes of easing in COVID-19 curbs in some pilot areas lifted tourism and consumer goods sectors, while expectations of policy support for the economy lifted sentiment.

The blue-chip CSI300 index ended 2.0% higher at 4,179.97, while the Shanghai Composite Index gained 1.5% to 3,213.33 points. The Hang Seng index rose 0.5% to 21,319.13, while the China Enterprises Index gained 0.8%, to 7,264.43 points.

** Tourism stocks surged 8.4%, transport firms soared 5.1%, while consumer staples added 3.9%. ** An unverified document about picking pilot regions, including Shanghai, for relaxed quarantine requirements is circulating and traders say it pushed up related sectors.

** New bank lending in China rose more than expected in March, while broad credit growth accelerated from the previous month. ** "Strong credit supply is helpful, but the economy will likely stay weak with many cities under lockdown," said Zhiwei Zhang, chief economist at Pinpoint Asset Management, adding that the COVID-19 outbreaks and the zero tolerance policy were the most important uncertainties faced by the economy.

** Mainland China reported 1,272 new confirmed cases and 23,387 new asymptomatic infections on April 11. ** China will step up the implementation of macro policies as the downward pressure on the economy is increasing, state media on Monday quoted Premier Li Keqiang as saying.

** China is also encouraging long-term investors to buy more equities and major shareholders of listed firms to increase their holdings when stocks slump. ** Inflows through the northbound leg of Stock Connect totalled 12.3 billion yuan ($1.93 billion) on the day, according to Refinitiv data.,

** Liquor makers rose 6.1%, led by a 10% jump in Shanxi Xinghuacun Fen Wine after saying it expected a 70% year-on-year jump in Q1 net profit. ** Real estate developers slumped 3.4%.

** Online gaming stocks gained as authorities granted licences to 45 internet games in April, the first time since July. The anime comic game subindex closed up 2.4%. ** In Hong Kong, Bilibili surged 12.8% and Tencent gained 3.6% even though their games were not in the list.

** Morningstar analysts said this "should bring much-needed relief to a sector that has been shaken by negative headlines." ** The Hang Seng Tech Index closed up 1.4%, while Kuaishou slumped 7.3%.