Mainland stocks climb on higher risk appetite

Shanghai stocks climbed to a 14- week high on improved risk appetite after the US Federal Reserve, while raising rates, dampened expectations of more aggressive tightening ahead.

The blue- chip CSI 300 index rose 0.52 percent to 3,481.51 points.

The benchmark Shanghai Composite Index advanced 0.84 percent to 3,268.94 points on Thursday, its highest since early December, while the Shenzhen Component Index finished 0.77 percent higher at 10,624.42 points.

The ChiNext, the country’s NASDAQ equivalent, added 0.45 percent to 1,966.73 points on the day.

The Fed raised its benchmark policy rate 25 basis points.

Most sectors gained ground, led by financial and energy plays. Property stocks eased after major cities imposed new property curbs to deter speculators. The liquor, agriculture services and household appliances sectors declined.

Shenzhen- listed shares of Chinese telecom equipment maker ZTE Corp jumped 10 percent to 16.81 yuan ($ 2.44) on Thursday, resuming trading after a nine- day halt.

ZTE’s Shenzhen- listed shares were suspended on March 7, pending the announcement on the US fine. Its Hong Kong- listed shares continued to trade and have jumped nearly 16 percent over that period.

The Hong Kong Monetary Authority raised its benchmark interest rate while the People’s Bank of China lifted short- term interest rates after the US rate hike.

Chi Lo, economist at BNP Paribas Investment Partners, said that the Fed’s 25 basis points hike should have a limited impact on Chinese interest rates or capital outflows, which have already shown signs of abating.

The Hang Seng index jumped 2.08 percent to 24,288.28 points.