China stocks end higher on upbeat GDP data

China stocks end higher on upbeat GDP data

China stocks ended higher on Monday, as investors cheered better-than-expected gross domestic product (GDP) data pointing to a strong recovery from the coronavirus crisis in the world’s second-largest economy.

The blue-chip CSI300 index rose 1.1% to close at 5,518.52, while the Shanghai Composite Index gained 0.8% to 3,596.22.

The tech-heavy start-up board ChiNext climbed 1.9%, while the STAR50 index firmed 2.3%.

China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-striken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic rages unabated.

The world’s second-largest economy has surprised many with the speed of its recovery from last year’s coronavirus jolt, especially as policymakers have also had to navigate tense U.S.-China relations on trade and other fronts.

Leading the gains, the CSI300 banks index and CSI300 materials index rose 2.3% and 2%, respectively.

There was muted reaction to news that the Trump administration notified Huawei suppliers, including chipmaker Intel, that it is revoking certain licenses to sell to the Chinese company and intends to reject dozens of other applications to supply the telecommunications firm.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.67%, while Japan’s Nikkei index closed down 0.97%.

At 07:19 GMT, the yuan was quoted at 6.4839 per U.S. dollar, 0.03% weaker than the previous close of 6.4817.

As of 07:20 GMT, China’s A-shares were trading at a premium of 35.99% over the Hong Kong-listed H-shares.

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