SHANGHAI: China stocks closed higher on Wednesday, underpinned by banking shares, as investors appeared to take in stride the suspension of Ant Group’s closely watched mega-listing, with a strong services activity survey aiding sentiment.

The US presidential election was also on investors’ radar, with the outcome still too close to call although President Donald Trump took the early lead in some key swing states.

The blue-chip CSI300 index rose 0.8%, to 4,813.66 points, while the Shanghai Composite Index added 0.2% to 3,277.44 points.

China on Tuesday suspended Ant Group’s $37 billion listing, thwarting the world’s biggest stock market debut. But analysts said the news could bode well for Chinese banks as it could mean decreased competition from the tech giant.

The CSI30 banks index closed up 1.7%, leading a broad rally in the market.

“...Given what’s going on in the IPO process and the new limit put on Ant Group, banks are probably getting relief”, said Shen Yi, CEO at Shanghai ShenYi Investment Co.—Reuters