chips: China blue-chips rise as export growth highlights global recovery – Latest News


Chinese blue-chip shares edged higher on Tuesday after new data showed the country’s exports rose in March, but persistent investor concerns that a solidifying recovery could prompt a shift to tighter policy kept gains in check.

At the midday break, China’s blue-chip CSI300 index was up 0.51%. The Shanghai Composite index was flat at 3,412.67 points. The consumer staples sector rose 1.63% and the information technology sector added 1.48%, but the real estate index dipped 0.59% and financials slipped 0.44% China’s exports grew strongly in March on improving global demand as COVID-19 vaccinations progress, and import growth hit a four-year high, adding to signs of a solidifying recovery in the world’s second-largest economy. China will maintain continuity, stability and sustainability of its economic policies, Sun Guofeng, head of the monetary policy department at the People’s Bank of China, said on Monday. Chinese H-shares listed in Hong Kong rose 0.63% to 10,943.09, while the Hang Seng Index was up 0.96% at 28,727.53.

Alibaba Group Holding Co Ltd shares continued to rise on Tuesday after China imposed a sweeping restructuring on affiliate Ant Group, underscoring Beijing’s determination to rein in its internet giants. “For Alibaba, the near-term overhang has been removed and there appears to have been a ‘meeting of the minds’ between management and the regulator which sets the stage for a more healthy relationship. Investors are responding positively to this sentiment,” said Tom Masi and Nuno Fernandes at GW&K Investment Management. The smaller Shenzhen index was up 0.63%, the start-up board ChiNext Composite index rose 2% and Shanghai’s tech-focused STAR50 index increased 0.83%. The yuan was quoted at 6.55 per U.S. dollar, 0.04% weaker than the previous close of 6.5475.

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