China stocks climb

20 Jan, 2016

China stocks rebounded roughly 3 percent on Tuesday, as weak quarterly economic data strengthened market expectations the government will unveil more stimulus moves. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 3.0 percent, to 3,223.13, while the Shanghai Composite Index gained 3.2 percent, to 3,007.74 points.
China's economic growth eased to 6.8 percent in the fourth quarter from a year earlier, matching expectations but still the slowest since the global financial crisis, putting pressure on policymakers to roll out more support measures. The strength in mainland markets also helped lift share prices in Hong Kong. "Economic weakness has been largely priced in," said Gu Yongtao, strategist at Cinda Securities.
"This year, export and consumption could remain weak. Investment, another drive of growth, really depends on government's spending on infrastructure." All main sectors rose. The infrastructure sector jumped 3 percent, while an index tracking property shares surged 3.5 percent. The service sector was the only one among major sectors that ended the morning in negative territory.

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