China's New Energy Surge Powers Stock Market Uptick

China stocks rose on Thursday, mainly driven by new energy sector gains. The Shanghai Composite and CSI300 indexes experienced recoveries, benefiting from year-end investor shifts. Prominent increases were seen in battery and lithium shares. Meanwhile, China's economic outlook is awaited, with key data due soon.

In a positive turn for investors, Chinese stocks experienced a notable rise on Thursday, led largely by the new energy sector. This surge in stock values precedes the release of pivotal economic data due on Friday.

By midday, the Shanghai Composite Index increased by 0.4% to 4,017.94, while the blue-chip CSI300 index climbed 1%, recovering prior losses. Zhikai Chen from BNP Paribas Asset Management noted a trend among local investors to secure year-to-date profits as their financial year-end approaches.

Significant gains were marked in the CSI New Energy Vehicle Index, which soared 6.9% to a three-year high, with CATL shares nearly breaking records and Tianqi Lithium advancing by 9.9%. China's Ministry of Industry anticipates announcing enhancements for the new energy battery sector soon.

(With inputs from agencies.)