China stocks end higher as inflation fears ease

  • 6/10/2021
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SHANGHAI, June 10 (Reuters) - China stocks ended higher on Thursday, as regulators played down inflation worries and as Sino-U.S. talks helped underpin sentiment. ** The blue-chip CSI300 index rose 0.7%, to 5,271.47, while the Shanghai Composite Index gained 0.5%to 3,610.86. ** The tech-heavy start-up board ChiNext rose 2.4%, while Shanghai’s tech-focused STAR50 index added 1.6%. ** China’s central bank governor said inflation is “basically under control”, and monetary policy would be kept steady, in comments a day after concerns over inflationary pressures were fanned by data showing the fastest rise in factory-gate prices in 12 years. ** Analysts said the market would be stable as a whole as Beijing vowed policy stability. ** Small- and medium-cap sectors performed well, as market participants favour growth stocks due to relatively friendly liquidity conditions at home and continued loose liquidity abroad, Vanho Securities said in a report. ** A strong yuan also helps bring more foreign inflows to the country’s equities market, the brokerage added. ** Investors on Thursday purchased 9.5 billion yuan ($1.49 billion) worth of A-shares via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data. ** Sino-U.S. talks also helped lift sentiment. ** Top U.S. and Chinese commerce officials spoke by telephone and agreed to promote healthy trade and cooperate over differences, China’s commerce ministry said on Thursday, the latest high-level exchange as the countries spar over disagreements. ** Shares in Chinese companies, which have business cooperation with TikTok, climbed after U.S. President Joe Biden withdrew a series of Trump-era executive orders that sought to ban new downloads of WeChat and TikTok. ** Bucking the broad strength, developers fell after the country’s top banking and insurance regulator warned of bubbles in the real-estate sector. ($1 = 6.3839 Chinese yuan renminbi) (Reporting by Shanghai Newsroom;Editing by Elaine Hardcastle) Our Standards: The Thomson Reuters Trust Principles.

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