Chinese equities rebounded as trade worries ease and stimulus expectations stoke
Chinese shares surged on Wednesday as China’s weak April industrial output and retail sales data increase the likelihood of further stimulus policies.
Worries of further escalating in trade friction were also eased a shade after US President Donald Trump cited the trade war with China “a little squabble” and insisted talks between the world’s two largest economies had not broken down.
At the close of market hours, the benchmark Shanghai Composite Index finished 1.91 percent higher to end at 2,938.68 points. The smaller Shenzhen Component Index added 2.44 percent to close at 9,259.03 points, while the CSI300 index rose 2.25 percent to 3,727.09 points.
Turnover on the two major bourses totaled 512.7 billion yuan (US$74.55billion), compared to the 455.5 billion yuan in the previous trading session.
All industry sectors posted gains. Shares of liquor, substitute meat and fuel cell led the gains. Shares of Luzhou Laojiao and Yan Tai Shuang Ta Food Co Ltd all jumped by the daily cap of 10 percent.