China stocks rise as half of Shanghai achieves 'zero-COVID' status

China stocks rose on Wednesday as investors took comfort in signs of lower domestic COVID-19 infections, while U.S. President Joe Biden's decision to consider eliminating Trump-era tariffs on Beijing further listed risk appetite.


Reuters | Shanghai | Updated: 11-05-2022 10:46 IST | Created: 11-05-2022 10:44 IST
China stocks rise as half of Shanghai achieves 'zero-COVID' status
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China stocks rose on Wednesday as investors took comfort in signs of lower domestic COVID-19 infections, while U.S. President Joe Biden's decision to consider eliminating Trump-era tariffs on Beijing further listed risk appetite. ** The CSI300 index was up 2% at 4,000.00 points, by the end of the morning session, while the Shanghai Composite Index gained 1.6% to 3,085.43 points.

** The Hang Seng index added 1.7% to 19,971.18 points. The Hong Kong China Enterprises Index gained 2.4% to 6,818.91. ** Shanghai said on Wednesday that half the city had achieved "zero-COVID" status, but uncompromising restrictions had to remain in place under a national policy. Meanwhile, new infections detected in Beijing dropped to the lowest level since April 26.

** The head of the World Health Organization said on Tuesday that China's zero-tolerance COVID-19 policy is not sustainable given what is now known of the virus. ** "Over the past week, the COVID situation has continued to improve at the national level," said Nomura in a note. "However, the turning point for economic fundamentals and most financial assets in coming weeks (or months) depends mainly on Beijing's stance on zero-COVID strategy instead of daily cases."

** Lifting market sentiment further, China's producer prices rose at the slowest pace in a year in April, despite the surge in global commodity costs, leaving room for more stimulus to shore up the flagging economy. ** Risks affecting China's onshore market are controllable, and the market has a solid foundation for stable operation, the official CCTV reported on Tuesday, citing a securities regulatory official.

** Biden, under pressure to tame high inflation, said he was considering eliminating Trump-era tariffs on China as a way to lower prices for goods in the United States. ** China equities could be approaching the late stage of a bear market, but the potential final leg is likely to be bumpy, Morgan Stanley strategists said in a note.

** The bank expected near-term market volatility to remain elevated, citing China's COVID situation, geopolitical tensions, global macro slowdown, and monetary tightening. ** Semiconductors and new energy firms jumped more than 5% each to lead the gains, while shares in healthcare, tourism, and machinery went up between 3.5% and 4.4%.

** Tech giants listed in Hong Kong climbed 4.6% to lift the Hang Seng benchmark, with index heavyweights Meituan and Tencent up 8.2% and 4.4%, respectively.

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

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