China shares rise driven by consumer, healthcare stocks; Hang Seng slips

Credit: REUTERS/ALY SONG

China stocks rose on Wednesday, led by gains in consumer and healthcare companies, as sentiment was lifted by hopes of a speedy economic recovery from the COVID-19 pandemic. ** At the midday break, the Shanghai Composite index was up 0.16% at 3,259.60 points. ** The blue-chip CSI300 index was up 0.55%. The consumer staples sector jumped 2.55% and the healthcare sub-index gained 0.84%. ** The smaller Shenzhen index was up 0.3%. The start-up board ChiNext Composite index rose 0.51% and Shanghai's tech-focused STAR50 index jumped 1.21%​. ** 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, 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. [nL4N2HH12I] ** Hong Kong's aggregate balance, an indicator of Hong Kong dollar liquidity, will hit an all-time high on Oct. 29 as the Ant IPO attracts cash into the financial hub. Ant Group is looking to raise up to $34.4 billion in Hong Kong and Shanghai.[nL1N2HI0WO] ** Markets 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. [nL1N2HJ02J] ** Chinese H-shares listed in Hong Kong fell 0.35% to 9,968.41, while the Hang Seng Index was down 0.24% at 24,727.20. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.14%, while Japan's Nikkei index was down 0.31%.

SSEC 0.2%, CSI300 0.6%, HSI -0.3%

HK->Shanghai Connect daily quota used -1.2%, Shanghai->HK daily quota used 6.1%

FTSE China A50 +0.5%

BEIJING/SHANGHAI, Oct 28(Reuters) - China stocks rose on Wednesday, led by gains in consumer and healthcare companies, as sentiment was lifted by hopes of a speedy economic recovery from the COVID-19 pandemic. ** At the midday break, the Shanghai Composite index .SSEC was up 0.16% at 3,259.60 points.

** The blue-chip CSI300 index .CSI300 was up 0.55%. The consumer staples sector .CSI000912 jumped 2.55% and the healthcare sub-index .CSI300HC gained 0.84%.

** The smaller Shenzhen index .SZSC was up 0.3%. The start-up board ChiNext Composite index .CNT rose 0.51% and Shanghai's tech-focused STAR50 index .STAR50 jumped 1.21%​.

** 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.

** Hong Kong's aggregate balance, an indicator of Hong Kong dollar liquidity, will hit an all-time high on Oct. 29 as the Ant IPO attracts cash into the financial hub. Ant Group is looking to raise up to $34.4 billion in Hong Kong and Shanghai.

** Markets 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.

** Chinese H-shares listed in Hong Kong .HSCE fell 0.35% to 9,968.41, while the Hang Seng Index .HIS was down 0.24% at 24,727.20.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was firmer by 0.14%, while Japan's Nikkei index .N225 was down 0.31%.

(Reporting by Cheng Leng in Beijing, Luoyan Liu and Andrew Galbraith in Shanghai; Editing by Amy Caren Daniel)

((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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