China stocks rise, aided by green stocks, healthcare plays | Reuters

China stocks rose on Friday as President Xi Jinping’s renewed green pledge bolstered clean energy stocks while a flare-up of coronavirus cases in some Asian countries helped support healthcare shares.

** The blue-chip CSI300 index rose 0.9%, to 5,135.45, while the Shanghai Composite Index gained 0.3% to 3,474.17 points.

** For the week, CSI300 climbed 3.4%, the biggest weekly gian in two months, while SSEC was up 1.4%.

** An index tracking China’s environment protection stocks rose over 1% after Chinese President Xi reiterated his pledge to make China carbon neutral by 2060. China will start phasing down coal use from 2026, Xi said at a summit of global leaders on Thursday.

** Meanwhile, China’s healthcare stocks registered robust gains amid reports of rising COVID-19 cases in India and Japan.

** Yang Hongxun, analyst at investment consultancy Shandong Shenguan, said the market will move sideways, as investors do not see a clear trend yet.

** The view was echoed by Chi Lo, senior economist at BNP Paribas Asset Management, who wrote: “The PBoC is handling a complicated dual-mandate of derisking the financial system and preventing any financial accidents while sustaining GDP growth.

** This backdrop is likely to lead to more upside for Chinese yields and volatility for Chinese stocks in the short term,” he said, predicting any policy loosening will likely only happen in the second half of the year. (Reporting by Shanghai Newsroom; editing by David Evans)

Comments are closed.