Media365
China’s stocks climbed on Friday, with the benchmark Shanghai Composite Index reaching the 4,000 level for the first time in 14 trading days, as broad-based gains and policy optimism lifted sentiment.
The Shanghai Composite Index rose 0.9 per cent to 4,006.40 as of 10am local time, its first move above 4,000 since March 19. In Hong Kong, the Hang Seng Index climbed 1.1 per cent to 26,042.36, rising above the 26,000 mark for the first time since March 18. The Hang Seng Tech Index advanced 2 per cent to 4,918.19.
On the mainland, the ChiNext Index added more than 1 per cent, with the Shenzhen Component Index up 0.8 per cent. Across exchanges in Shanghai, Shenzhen and Beijing, nearly 4,500 stocks were higher, pointing to a strong risk-on mood.
Gains were led by memory chipmakers and Chinese brokerages, alongside strength in semiconductor and Inner Mongolia-related plays.
The rally also came as China’s producer price index turned positive, ending a 41-month stretch of contraction, in a sign that deflationary pressures may be easing.
The rebound in equities amid eased geopolitical tension also reflected improving expectations for industrial demand and corporate earnings, as well as continued policy support for capital markets. Investors are increasingly positioning for a stabilisation in China’s growth outlook, with technology and financial shares attracting fresh inflows.
