China stocks rise on policy support; EV shares lead gains

Guangdong Investment

23/12/2020 04:34

* SSEC +0.9%, CSI300 +1%, HSI +0.4%
    * PBOC to cool credit growth in 2021, avoid premature policy
tightening
    * China state planner to launch inspection on enterprise
bond
repayment risks next year

    BEIJING/SHANGHAI, Dec 23 (Reuters) - China shares rose on
Wednesday, led by gains in manufacturers and suppliers of
electric vehicles, as investors were assured that policymakers
would avoid sudden policy tightening in 2021 to support an
economic recovery from the pandemic-induced slump. 
    
** By the midday break, the Shanghai Composite index  .SSEC  was
up 0.85% at 3,385.35, while China's blue-chip CSI300 index
 .CSI300  was up 0.99%.

** The tech-heavy start-up board ChiNext Composite index  .CNT 
was higher by 1.53% and Shanghai's tech-focused STAR50 index
 .STAR50  was up 0.66%​.

** Leading the gains, the new energy vehicle sub-index
 .CSI399976  and the CSI300 industrials index  .CSI000910  rose
3.17% and 2.13%, respectively.
    
** Qingdao TGOOD Electric Co Ltd  300001.SZ , an EV charging
pole maker, soared 13.8% to touch its highest in nearly five
years, while BAIC Bluepark New Energy Technology Co Ltd
 600733.SS , the EV making unit of state-owned BAIC Automotive
Group, hit the highest level since January 2016.     
 
** Chinese H-shares listed in Hong Kong  .HSCE  rose 0.71% to
10,457.99, while the Hang Seng Index  .HSI  was up 0.44% at
26,235.27. The smaller Shenzhen index  .SZSC  was up 0.87%.
    
** China's central bank will scale back support for the economy
in 2021 and cool credit growth, but fears of derailing a
recovery from a pandemic-induced slump and debt defaults are
likely to prevent it from tightening any time soon, policy
sources said.  urn:newsml:reuters.com:*:nL1N2J22M4
    
** China's state planner said it would launch a nationwide
inspection on the repayment risks for enterprise bonds that
mature in the near term and in 2021.  urn:newsml:reuters.com:*:nB9N2I6014          
 
** Around the region, MSCI's Asia ex-Japan stock index
 .MIAPJ0000PUS  was weaker by 1.05%, while Japan's Nikkei index
 .N225  was up 0.35%.
 
** The yuan  CNY=CFXS  was quoted at 6.5508 per U.S. dollar,
0.12% weaker than the previous close of 6.5429. 

 (Reporting by Zhang Yan in Beijing, Luoyan Liu and Andrew
Galbraith in Shanghai; Editing by Subhranshu Sahu)
 ((zoey.zhang@thomsonreuters.com))