Chinese stocks edged up on Friday to near a two-week high as declines in industrial profits slowed, while Hong Kong gained in thin holiday trading.
China stocks close up in thin trade
-
At the midday break, the Shanghai Composite index pared earlier losses and climbed 0.3% to 3,407.89 points, the highest level since Dec. 12. China’s blue-chip CSI300 index added 0.1%.
-
Both indexes are set to end a two-week losing streak and close the final week of the year higher.
-
In Hong Kong, the benchmark Hang Seng Index added 0.1%, bringing the gain this week to 2% in holiday-thinned trading.
-
Industrial profits fell 7.3% in November from the same month last year, following a 10% drop in October, National Bureau of Statistics (NBS) data showed on Friday.
-
The data signaled improved profits as recent economic stimulus measures begin taking effect, analysts said.
-
Investors are also digesting Beijing’s record stimulus plans for 2025 announced earlier in the week.
-
The authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, the highest on record, as Beijing ramps up fiscal stimulus to revive a faltering economy, Reuters reported.
-
The country will also ramp up fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents as well as expanding consumer goods trade-ins, the finance ministry said on Tuesday.
-
The market outlook remains promising with both monetary and fiscal policies on an easing cycle, analysts at Cinda Securities said in a note, adding that consumer and technology sectors are most likely to benefit.
Comments