China's blue-chip stocks post third weekly gains on upbeat data, policy support

Credit: REUTERS/CHINA DAILY

China stocks were little changed on Friday but posted a weekly gain, buoyed by fresh policy support and upbeat data that pointed to an economic recovery from the COVID-19 fallout.

SHANGHAI, Oct 16 (Reuters) - China stocks were little changed on Friday but posted a weekly gain, buoyed by fresh policy support and upbeat data that pointed to an economic recovery from the COVID-19 fallout.

** The blue-chip CSI300 index .CSI300 fell 0.2% to 4,791.68, while the Shanghai Composite Index .SSEC added 0.1% to 3,336.36.

** The tech-heavy start-up board ChiNext .CNT slipped 0.5%, while the STAR50 .STAR50 fell 1.1%.

** For the week, the CSI300 gained 2.4% and logged its third straight weekly gain, while SSEC was up 2%.

** "The market found support in the country's relatively robust consumption recovery during the Golden Week holiday," said Zheng Zichun, an analyst with AVIC Securities.

** Investors cheered latest upbeat trade data showing China's imports grew at their fastest pace this year in September. New bank loans grew more than expected in September, fuelled by a jump in corporate loans.

** Beijing's continued policy support for its capital markets also helped boost risk appetite earlier in the week.

** China said it will extend its initial public offering (IPOs) reforms to all parts of its stock markets at an appropriate time.

** That came after China's state council published last Friday the Opinion on Further Improving the Quality of Listed Companies, which includes exploring more long-term evaluation mechanisms for institutional investors to attract more mid and long-term funds.

** But analysts urged caution given various uncertainties.

** The A-share market could remain range-bound ahead of the U.S. elections, which could cause fluctuations in the U.S. stock market, while investors are still cautious over geopolitical tensions including Sino-Indian border dispute and the tensions in Taiwan strait, AVIC Securities' Zheng said.

** Morgan Stanley analysts said in a report that investors should keep an eye on the U.S. election outcome, China's fifth plenum later this month and earnings results in the third quarter.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

((luoyan.liu@thomsonreuters.com; Reuters Messaging: luoyan.liu.thomsonreuters.com@reuters.net))

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

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More