Chinese stocks recouped earlier losses to end higher on Wednesday, boosted by strength in consumer and healthcare companies. The blue-chip CSI300 index rose 0.3 percent, to 4,085.85, while the Shanghai Composite Index closed up 0.1 percent at 3,241.93 points. Both indexes had lost ground in early trading amid worries over global economic growth.
The global economy is slowing more than expected and a sharp downturn could require world leaders to coordinate stimulus measures, the International Monetary Fund said on Tuesday as it cut its forecast for world economic growth this year. Sector performance was mixed for the day, with gains in consumer and healthcare firms offsetting losses in other sectors.
The CSI300 consumer discretionary index rose 2.4 percent, while the healthcare index climbed 1.5 percent. "The stock market will continue to maintain its strong momentum for the short term, as expectations improved for economic growth recovery after upbeat factory activity data in March", domestic brokerage Wanlian Securities noted in report.
The largest percentage gainers in the main Shanghai Composite index were Yueyang Forest & Paper Co Ltd, up 10.1 percent, followed by Guizhou Changzheng Tiancheng Holding Co Ltd, which rose 10.09 percent and Jiangsu Lianhuan Pharmaceutical Co Ltd, which added 10.06 percent. The largest percentage losers in the Shanghai index were Pengqi Technology Development Co Ltd, down 10 percent, followed by an 8 percent decline each in Fujian Apex Software Co Ltd and People.cn Co Ltd.
So far this year, the Shanghai stock index is up 30 percent and the CSI300 has risen 35.7 percent, while China's H-share index listed in Hong Kong is up 16.2 percent. Shanghai stocks have risen 4.89 percent this month.
About 38.01 billion shares were traded on the Shanghai exchange, roughly 89.3 percent of the market's 30-day moving average of 42.55 billion shares a day. The volume in the previous trading session was 36.42 billion.
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