China stocks end higher on abundant liquidity; EV, healthcare shares shine

China stocks end higher on abundant liquidity; EV, healthcare shares shine

BEIJING/SHANGHAI: China stocks closed higher on Wednesday, with electric vehicle and healthcare shares leading the gains, as the central bank kept liquidity abundant to support economic recovery from the Covid-19.

The Shanghai Composite index ended 0.47 per cent higher at 3,583.09 while the blue-chip CSI300 index added 0.72 per cent.

The new-energy vehicle sector sub-index rose 4.6 per cent, while the healthcare sub-index was up 3.57 per cent. The Shenzhen index ended up 1.36 per cent and the start-up board ChiNext Composite index was higher by 3.905 per cent.

China’s central bank injected a net 278 billion yuan on the day via reverse repo operations, according to Reuters calculation.

Chinese mom-and-pop investors are stampeding into the stock market for fear of missing out on the bull run, with more than 1.6 million share trading accounts newly opened in December, doubling from a year earlier, latest data shows.

Meanwhile, Beijing’s municipal government stepped up Covid-19 measures after reporting the biggest daily jump in new cases in more than three weeks.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 2.03 per cent, while Japan’s Nikkei index closed down 0.38 per cent. At 0704 GMT, the yuan was quoted at 6.4656 per U.S. dollar, 0.22 per cent firmer than the previous close of 6.48.

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