China shares end higher on gains in consumer, healthcare stocks

Credit: REUTERS/ALY SONG

China shares ended higher for a second consecutive day on Wednesday, as consumers and healthcare stocks gained amid hopes of further economic recovery from the pandemic.

SSEC 0.5%, CSI300 0.8%

HK->Shanghai Connect daily quota used 2.7%, Shanghai->HK daily quota used 14.1%

FTSE China A50 +0.7%

BEIJING/SHANGHAI, Oct 28 (Reuters) - China shares ended higher for a second consecutive day on Wednesday, as consumers and healthcare stocks gained amid hopes of further economic recovery from the pandemic.

** At the close, the Shanghai Composite index .SSEC was up 0.46% at 3,269.24.

** The blue-chip CSI300 index .CSI300 was up 0.81%, with its consumer staples sector .CSI000912 2.24% higher, and the healthcare sub-index .CSI300HC rose 1.13%.

** The smaller Shenzhen index .SZSC ended up 0.89%,the start-up board ChiNext Composite index .CNT increased 0.74%, and Shanghai's tech-focused STAR50 index .STAR50 jumped 1.47%​.

** Mainland shares are accumulating momentum this week as investors are expecting further economic recovery and new listings of fintech shares such as Alibaba's Ant Group 688688.SS, said Yang Delong, investment manager at First Seafront Fund Management Co.

** A Reuters poll forecast China's fourth-quarter GDP rising 5.8% year-on-year, up from 4.9% reported in the July-September period as economic recovery accelerated in the third quarter after consumers shook off their coronavirus caution.

** Investors are also fishing for food and beverage stocks sold in previous sessions due to lower-than-expected quarterly results, according to Yang.

** But market's liquidity will be tested by the upcoming blockbuster Ant IPO and investors are likely to lock in more profits from blue-chip property and financial shares, said Zhang Qi, analyst with Haitong Securities Co.

** Investors shrugged off news of a resurgence in coronavirus infections in the northwestern Xinjiang region. China reported 42 new COVID-19 cases on Oct. 27, the highest daily toll in more than two months.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.14%, while Japan's Nikkei index .N225 closed down 0.29%.

(Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew Galbraith in Shanghai; Editing by Krishna Chandra Eluri)

((cheng.leng@thomsonreuters.com; +8610-5669-2129;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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