China shares end higher as some IT firms pledge against anti-competition | Reuters

China shares rose on Wednesday, with IT firms leading the gains, as investors cheered internet platform companies pledging to avoid anti-competitive behaviours after e-commerce giant Alibaba was fined a record $2.75 billion last week for such practices. ** At the close, the Shanghai Composite index was up 0.6% at 3,416.72, while the blue-chip CSI300 index was up 0.83%. ** The information technology sector added 1.38%, and the material sector gained 1.97%. ** Shares of were set for their best session since April 1, after the Chinese e-commerce firm, along with 11 other internet platform companies, pledged to avoid anti-competitive behaviours such as forcing vendors to use their platform exclusively. ** This is the first batch of the 34 companies including Tencent that were ordered by China’s market regulator to conduct self-inspections for illegal business behaviours on Tuesday, warning of “severe punishment” for any that still violated the rules. ** Analysts say expectations of regulatory action had been largely priced in for internet companies before the fine, and the market uncertainty will be reduced. ** China’s exports grew strongly in March on improving global demand as COVID-19 vaccinations progress, and import growth hit a four-year high, data showed on Tuesday, adding to signs of a solidifying recovery in the world’s second-largest economy. ** The smaller Shenzhen index ended up 1.41% and the start-up board ChiNext Composite index was higher by 2.24%. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.96%, while Japan’s Nikkei index closed down 0.44%. (Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew Galbraith in Shanghai, Editing by Sherry Jacob-Phillips)

Comments are closed.