China shares regain ground as data signals firm economic rebound


Repeats to chain to alerts

SSEC +0.26%, CSI +0.51%

China industrial profits rise in June but uncertainty remains

China takes over premises of U.S. consulate in Chengdu

SHANGHAI, July 27 (Reuters) - Chinese shares clawed back lost ground on Monday after data showed that China's economic recovery is continuing to build momentum, but heightened Sino-U.S. tensions kept gains in check.

** At the close, the Shanghai Composite index .SSEC was up 0.26% at 3,205.23 and the blue-chip CSI300 index .CSI300 was up 0.51%.

** Industrial firms' profits rose for a second straight month in June and at the fastest pace in more than a year, adding to signs that an economic recovery from the coronavirus crisis is gaining momentum, but officials warned of continued uncertainty.

** After a record slump early in the year, China's economy rebounded more than expected in the second quarter as virus lockdown measures ended and policymakers ramped up stimulus.

** China on Monday said it had taken over the premises of the U.S. consulate in the southwestern city of Chengdu after ordering the facility be shut in retaliation for being ousted from the Chinese consulate in Houston, Texas.

** The announcement that China would force the U.S. consulate to close had battered shares on Friday, sending the benchmark Shanghai Composite index .SSEC 3.9% lower and the blue-chip CSI300 index .CSI300 4.4% lower.

** The smaller Shenzhen index .SZSC ended up 0.28% and the start-up board ChiNext Composite index .CNT was higher by 0.149%. The index tracking the 50 most representative stocks on Shanghai's STAR market .STAR50 fell 1.06%.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.76%, while Japan's Nikkei index .N225 closed down 0.16%.

** At 0712 GMT, the yuan CNY=CFXS was quoted at 6.9988 per U.S. dollar, 0.26% firmer than the previous close of 7.017.

** So far this year, the Shanghai stock index is up 5.1% and the CSI300 has risen 10.5%, while China's H-share index listed in Hong Kong is down 9.7%. Shanghai stocks have risen 7.39% this month.

** As of 0714 GMT, China's A-shares were trading at a premium of 31.77% over the Hong Kong-listed H-shares.

(Reporting by Andrew Galbraith, Editing by Sherry Jacob-Phillips)

((; +86 21 2083 0079; Reuters Messaging: ; Twitter:

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


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.