Shanghai stocks end higher as cenbank pledges further policy support

Shanghai stocks rose in a holiday-shortened week, with consumers leading the gains on Thursday after the central bank pledged support to ensure ample liquidity, though sentiment was weak as surveys showed China’s economic activity had shrunk last month.To get more shanghai stock news, you can visit shine news official website.
The Shanghai Composite Index closed 0.7% higher at 3,067.76 points, while the blue-chip CSI300 index fell 0.2% to 4,010.21.

** Both official and private surveys showed China’s services and factory activities contracted at a steeper pace in April amid escalating COVID-19 lockdowns, raising fears of a sharp economic slowdown in the second quarter that will weigh on global growth.
China’s central bank on Wednesday pledged monetary policy support to help businesses badly hit by the latest COVID-19 outbreak in the country, and support a recovery in consumption.

** Consumer staples edged up 0.2%, and consumer discretionary added 2.4%, while automobiles and healthcare firms each went up 3.5%.

** Beijing shut scores of metro stations and bus routes and extended COVID-19 curbs on many public venues, focusing efforts to avoid the fate of Shanghai, where millions have been under strict lockdown for more than a month.

** “We still believe markets should remain focused on the development of the pandemic and the corresponding zero-COVID strategy,” said Nomura in a note.

** Tourism stocks fell 0.5% after government data showed Chinese travelers spent 43% less over the five-day Labour Day holiday than a year earlier.
Real estate developers lost more than 2%, dismissing vows to support the property market and provide reasonable financing needs to developers by the central bank, the securities regulator, the banking and insurance regulator and the Shenzhen Stock Exchange.

** The CSI Computer Index dropped 1.5%, led by a 10% slump in Hangzhou Hikvision Digital Technology Co , following the Financial Times report that the United States is moving towards imposing new sanctions on the Chinese video surveillance company.

** CATL plunged more than 8% after the world’s largest electric vehicle (EV) battery manufacturer reported a 23.6% drop in first-quarter profit. (Reporting by Shanghai Newsroom; Editing by Uttaresh.V and Sherry Jacob-Phillips)