Stocks rise on economic data
Tech shares up as regulators clear way for offshore-listed firms’ domestic IPOs
SHANGHAI — China stocks rebounded sharply on Monday amid optimism about robust April economic data despite lingering Sino-US trade dispute. Investors were especially enthusiastic about tech shares after regulators detailed rules paving the way for domestic flotation of overseas-listed technology giants.
The blue-chip CSI 300 Index rose 1.6 percent to 3,834.19 points, and the Shanghai Composite Index gained 1.5 percent to 3,136.64 points.
A flurry of Chinese data in the coming weeks is expected to show that the country remained strong in April, underpinned by a pickup in industrial output and a rebound in exports despite rising trade tensions with the United States.
Moreover, continued negotiations will likely result in a scale-back of the current proposal on tariffs as China quickens its implementation of some announced opening and reform measures in the next couple of months, UBS Securities wrote on Monday.
Tech shares in China rose sharply, after China’s securities regulator on Friday published draft rules on the issuance of China Depositary Receipts, paving the way for domestic flotation of offshorelisted technology giants.
The CSI 300 Index posted robust gains, with its financial sector sub-index higher by 1.02 percent, the consumer staples sector up 4.49 percent, the real estate index up 1.83 percent and healthcare sub-index up 2.54 percent.
The ChiNext Index, China’s Nasdaq-style board of growth enterprises, rose 2.07 percent to close at 1,852.34 points on Monday.
Starting trading in 2009, the ChiNext Board mainly lists high-tech companies and those with high growth potential. The ChiNext Index, together with the Shenzhen Component Index and the Shenzhen SME Board Index, are major indices reflecting the performance of stocks listed on the Shenzhen Stock Exchange.
Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.05 percent, while Japan’s Nikkei index closed down 0.03 percent.