China shares rebound as Shanghai eases lockdowns

** "What else could be bad that isn't already priced into this market?" he said. ** So far this year, the Shanghai stock index is down 14.9% and the CSI300 has fallen 19%, while China's H-share index listed in Hong Kong is down 16.2%.


Reuters | Beijing | Updated: 19-05-2022 13:27 IST | Created: 19-05-2022 13:21 IST
China shares rebound as Shanghai eases lockdowns
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China ended higher on Thursday, recovering from earlier losses on hopes for economic recovery as the country's financial hub set out its latest plan for exiting coronavirus lockdowns, with buying boosted by inflows from foreign investors.

** China's blue-chip CSI300 index ended the day up 0.19% at 3,999.60, after dropping nearly 1.5% earlier. The Shanghai Composite index rose 0.36% to 3,096.96. ** Battery makers and automobile manufacturers led gains after data from the China Passenger Car Association showed a jump in retail sales in the first half of May.

** The CSI Automobiles sub-index rose 0.32% and the environmental protection sub-index jumped 3.2%. High-tech shares rose 0.39%. ** Companies involved in battery manufacturing, including LONGi Green Energy Technology Co Ltd and Contemporary Amperex Technology Co Ltd (CATL), were among the most-traded A-shares through the Stock Connect program on Thursday, Hong Kong exchange data showed.

** Foreign investors were net buyers of A-shares, with Refinitiv data showing inflows of more than 8.5 billion yuan ($1.26 billion) through Stock Connect. ** Offering some hope for investors, authorities in Shanghai announced more plans for exiting lockdowns.

** Relaxing COVID-19 restrictions are a potential catalyst for greater foreign investment, said Andy Maynard, head of equities at China Renaissance in Hong Kong. ** "What else could be bad that isn't already priced into this market?" he said.

** So far this year, the Shanghai stock index is down 14.9% and the CSI300 has fallen 19%, while China's H-share index listed in Hong Kong is down 16.2%. Shanghai stocks have risen 1.64% this month. ** The smaller Shenzhen index ended up 0.58% and the start-up board ChiNext Composite index was higher by 0.497%.

** At 0722 GMT, the yuan was quoted at 6.7647 per U.S. dollar, 0.17% weaker than the previous close of 6.753. ($1 = 6.7627 Chinese yuan)

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

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