China Stocks Edge Up On New Energy Gains

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China stocks inched up on Tuesday as gains in new energy companies and non-ferrous metal shares offset losses in the energy sector, while rising coronavirus cases in a local outbreak weighed on sentiment.

The CSI300 index (.CSI300) rose 0.1% to 4,922.13 points at the end of the morning session, while the Shanghai Composite Index (.SSEC) lost 0.2% to 3,610.32 points.

The Hang Seng index (.HSI) dropped 0.1% to 23,209.01 points. The Hong Kong China Enterprises Index (.HSCE) lost 0.3% to 8,175.65.

China will keep its monetary policy flexible next year, step up oversight of capital and platform companies, and steadily implement a management system for real estate financing, the central bank said on Monday.

On the same day, the finance ministry said China will roll out fiscal policies proactively next year to stabilise economic growth, vowing that the impact of the drive would be felt earlier than usual.

Dragging sentiment, however, China’s local symptomatic coronavirus cases rose for a fourth consecutive day on Monday, with Xian city reporting more infections in a flare-up that has put 13 million residents under lockdown.

Non-ferrous metal (.CSI000811) and new energy vehicles (.CSI399976) gained more than 1% each.

The energy subindex  declined 2.3%, while utilities stocks  and construction engineering firms lost 1.7% and 1.9%, respectively.

China’s securities watchdog on Friday proposed tightening rules governing Chinese companies’ listings abroad, which bankers and analysts said is likely to ease the regulatory uncertainty that roiled financial markets this year and stalled offshore listings.

Chinese tech giants listed in Hong Kong (.HSTECH) went down 1%, after their U.S.-listed counterparts declined overnight, with Tencent Holdings (0700.HK) and Meituan (3690.HK) down more than 2% each. Alibaba Group (9988.HK) edged up 0.4% though.

Hang Seng Mainland Properties Index (.HSMPI) rose 1.6%, with Evergrande (3333.HK) surging 6.1%, after China introduced several marginal easing policies in the sector over the weekend.

Embattled Evergrande Group said on Sunday it had made initial progress in resuming construction work.
– Reuters

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