Mainland stocks gain on bright trade data

Chinese mainland stocks gained on Thursday, as investors were encouraged by China’s solid trade data and Federal Reserve Chair Janet Yellen’s signal to adopt a patient approach in the current US rate- tightening phase.

The blue- chip CSI300 index rose 0.77 percent to 3,686.92 points. The Shanghai Composite Index gained 0.64 percent to 3,218.16 points.

But start- ups in both markets underperformed. The mainland’s small- cap board ChiNext lost 0.44 percent.

The market was inspired by better- than- expected China trade data for June. Exports rose 11.3 percent last month from a year earlier, while imports expanded 17.2 percent, suggesting the economy is holding up well thanks to firmer global demand.

“Today’s upbeat figures point to still strong foreign demand for Chinese goods, as well as fairly resilient domestic demand,” said Julian Evans- Pritchard, China Economist at Capital Economics.

“Looking ahead, exports should continue to do well given the relatively positive outlook for China’s main trading partners.”

Risk appetite also improved after Wall Street hit record peaks as investors wagered policy tightening in the US would be glacial at best.

Chinese investors continued to plow money into blue chips, helping to lift sectors such as banking, raw materials and infrastructure.

“Mainland investors are increasingly ditching speculative trading, and putting money in those companies that generate predictable incomes,” said Wu Wei, analyst at Zheshang Securities Co.