SHANGHAI: China stocks closed up for a ninth session on Friday, lifted by authorities’ measures to spur economic growth and boost market confidence, while investors are awaiting further policy guidance and economic indicators to gauge if the market rally could sustain.
China’s blue-chip CSI 300 Index edged 0.1% higher, closing up to the highest level since December, while the Shanghai Composite Index climbed 0.6%.
Hong Kong’s benchmark Hang Seng Index slipped 0.1% and the Hang Seng China Enterprises Index gained 0.1%.
For the first week following the long Lunar New Year break, the CSI300 gained 3.7% and the Hang Seng added 2.4%.
The Shanghai Composite Index rose above the psychologically key 3,000-point level last seen on Dec. 12.
“It’s a significant move the benchmark has risen above the 3000-point key level,” said Yang Delong, chief economist at First Seafront Fund Management. “It underscores that market confidence is gradually coming back.”
“A-share investor sentiment had improved post-CNY (Chinese New Year) holidays amid stepped-up market-supportive measures and positive CNY travel data,” Morgan Stanley said in a note.
In the week, the central bank announced a larger-than-expected benchmark mortgage rate cut to boost housing demand, while the securities watchdog held seminars to study tighter scrutiny of company listings and trading behaviour.
Shares in media firms and automobiles jumped more than 2% each, while energy stocks lost 1.6%.
In Hong Kong, tech giants lost 0.3% and energy companies retreated 0.6%.
Official data showed China’s new home prices slowed their month-on-month declines in January, but the nationwide downward trend persisted despite Beijing’s efforts to revive demand.
Market participants are cautiously awaiting authorities’ next policy move as China’s rubber stamp parliament - the National People’s Congress - begins its annual meeting on March 5.
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