SHANGHAI: China shares closed higher on Monday, rebounding from the previous week’s fall, after growing factory activity in January showed a continued recovery in the world’s second-largest economy, although domestic lockdowns hit the pace of growth.
At the close, the Shanghai Composite index was up 0.64% at 3,505.28.
The blue-chip CSI300 index rose 1.23% after falling more than 3.9% last week, with its financial sector sub-index 1.25% higher and the real estate index up 0.89%.
The healthcare sub-index, which lost nearly 7% between last Monday and Friday, jumped 2.24%.
The Shenzhen index gained 1.18% and the start-up board ChiNext Composite index rose 0.995%.
Companies engaged in silver mining and trade jumped as the price of the precious metal rallied. Shengda Resources Co Ltd, Yintai Gold Co Ltd, Henan Yuguang Gold & Lead Co Ltd and Inner Mongolia Xingye Mining Co Ltd gained between 8% and 10%. Shares in listed companies linked to China’s HNA Group slumped after the conglomerate disclosed that its creditors had applied for its bankruptcy and that nearly $10 billion had been embezzled by shareholders of its three units.
Hainan Airlines dropped 9.8% and HNA Innovation fell 4.97%.
China’s factory activity grew in January, in line with an ongoing economic recovery, but at the slowest pace in five months after new coronavirus infections prompted lockdowns.
Domestic liquidity conditions remained tight on Monday, as the central bank refrained from making large fund injections ahead of the week-long Lunar New Year holidays. Recent tightness has prompted speculation of a shift to a tighter monetary policy stance, raising the heat on corporate issuers facing a mountain of maturing debt.—Reuters
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