China stocks rise as Beijing pledges more support for economy

SHANGHAI: China stocks rose on Monday as Beijing vowed to step up support for the economy next year amid a lingering trade war with the United States.

China will increase support for the economy in 2019 by cutting taxes and keeping liquidity ample, the official Xinhua news agency said, following an annual meeting of top leaders. The blue-chip CSI300 index rose 0.3 per cent, to 3,038.20, while the Shanghai Composite Index gained 0.4 per cent to 2,527.01 points.

For the short term, the signals from the Central Economic Work Conference could have a certain soothing effect on market sentiment, investment bank China International Capital Corporation wrote in note. The ultimate effect would depend on the implementation of those policies and reforms mentioned in the work conference, the bank added.


The CSI300 financial sector sub-index was lower by 0.39 per cent, the consumer staples sector up 0.67 per cent, the real estate index down 0.69 per cent and the healthcare sub-index up 2.57 per cent.

The smaller Shenzhen index ended up 0.86 per cent and the start-up board ChiNext Composite index was higher by 1.104 per cent.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.27 per cent.

At 07:05 GMT, the yuan was quoted at 6.8971 per U.S. dollar, 0.14 per cent firmer from its previous close of 6.907.

The largest per centage gainers in the main Shanghai Composite index were GuangDong Super Telecom Co Ltd, up 10.02 per cent, followed by Wuhan Bester Group Telecom Co Ltd , gaining 10.01 per cent, and Suzhou Secote Precision Electronic Co Ltd, up by 10.01 per cent.

The largest percentage losers in the Shanghai index were China Securities Co Ltd, down 9.95 per cent, followed by Huayi Electric Co Ltd losing 8.74 per cent and Guangdong Songfa Ceramics Co Ltd down by 7.7 per cent.