Stocks end higher as report lifts sentiment

Shanghai stocks recovered from a two-and-a-halfyear low to close higher on Monday after a report saying that China’s securities regulators have summoned brokerage analysts for views on the market improved investor sentiment.

The Shanghai Composite Index ended up 1.11 percent at 2,698.47 points. However, earlier in the trading session, the index had fallen by around 0.6 percent to 2,653.11 points, the lowest since February 26, 2016.

The blue-chip CSI300 index ended 1.17 percent higher, with its financial sector sub-index closing 1.76 percent up, the consumer staples sector ending up 1.24 percent, the real estate index closing 1.99 percent firmer and the healthcare sub-index closing down 1.95 percent.

The China Securities Regulatory Commission (CSRC) held a closed-door meeting with some brokerage economists and strategists on Monday to hear their views on the market, the official China Securities Journal reported. Although the CSRC did not provide any policy guidance, the regulators’ meeting helped improve market sentiment.

Investors also cheered news that China and the US will re-launch trade talks this month. Reports suggest that the talks in Washington could take place on Tuesday and Wednesday, just before $16 billion worth of new US tariffs on Chinese goods take effect.