Chi­nese shares climb up higher Mon­day

Global Times US Edition - - BIZMARKETS -

Chi­nese stocks re­bounded and closed higher on Mon­day, with the bench­mark Shanghai Com­pos­ite In­dex up 1.22 per­cent to close at 2,630.52 points.

The Shen­zhen Com­po­nent In­dex closed 2.4 per­cent higher at 7,832.29 points. In­vestors were en­cour­aged after the Chi­nese govern­ment ramped up its sup­port for pri­vate en­ter­prises over the week­end, rolling out a se­ries of mea­sures, in­clud­ing a sim­pli­fied process for listed com­pa­nies to buy back shares, an­nounced the China Se­cu­ri­ties Reg­u­la­tory Com­mis­sion on Fri­day.

Also, China will study and im­ple­ment tax cuts of a larger scale with more sig­nif­i­cant fee re­duc­tions for com­pa­nies, Fi­nance Min­is­ter Liu Kun said on Mon­day, after the State Ad­min­is­tra­tion of Tax­a­tion’s chief said that the depart­ment is plan­ning more tax cuts to back the pri­vate sec­tor.

“The A-share mar­ket is en­ter­ing its lat­ter phase of a cor­rec­tive re­bound,” said the an­a­lysts. “We will fo­cus on high qual­ity growth stocks in ar­ti­fi­cial in­tel­li­gence, 5G, cloud com­put­ing and chip­mak­ing, and blue chips in the fi­nan­cial, real es­tate and phar­ma­ceu­ti­cal sec­tors.”

But in­vestors at home and abroad are still cau­tious, said Steven Leung, head of sales at the bro­ker­age UOB Kay Hian.

With the in­tro­duc­tion of new pol­icy mea­sures, risk ap­petite is on the rise in the Chi­nese eq­uity mar­ket, the an­a­lysts said.

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