China stocks climb on upbeat economic data, listings momentum

HONG KONG: The Chinese stock market climbed on Friday, with blue-chip shares clocking their best week in four, as sentiment was supported by improving economic data and a slew of new listings.

The Shanghai Composite index closed up 1.6 per cent at 3,403.81. The blue-chip CSI300 index jumped 2.4 per cent.

Stocks clung on to a momentum this week that was fuelled by upbeat data showing improving industrial profits and a surge in the start-up Chinext board.


The CSI300 rose 2.7 per cent this week - its best in four - and Shanghai shares up 0.7 per cent for the week, their best in three.

Historic reforms that saw relaxation in listing requirements and trading rules of the Shenzhen stock bourse, brought 18 companies to the start-up Chinext board this week.

The smaller Shenzhen index added almost 2 per cent, ChiNext gained 2.6 per cent while the tech-focused STAR50 fell 0.3 per cent.

A surge in Chinext volumes and a rebound in earnings of companies in the Shanghai market aided investor sentiment this week, Morgan Stanley analysts said in a note.

They said second-quarter earnings season was more than half way through and Chinese firms had beaten estimates significantly, supporting their view that corporate earnings troughed in the first quarter and would stay on track for a recovery and achieve positive growth for 2020.

Founder Securities said investors should focus on individual stocks and not index-level volatility, and prepare for the listing of Ant Group, while China Central Securities recommended blue-chips that may pick up in a catch-up rally.

Ant Group, Alibaba's fintech arm, filed for a dual listing this week in Hong Kong and on Shanghai's Nasdaq-style STAR Market on Tuesday, which could be the world's largest IPO.

The yuan was 0.38 per cent stronger at 6.8681 per U.S. dollar at 0714 GMT. About 27.13 billion shares were traded on the Shanghai exchange, more than the previous trading session's 23.71 billion.