Economic figures raise investor sentiment

Hu Yumo
Shanghai stocks rise more than one percent as investment sentiment is boosted by faster-than-expected growth in China's factory output and retail sales continue to recover.
Hu Yumo

Shanghai stocks rose on Monday as investment sentiment was lifted by positive economic data.

The benchmark Shanghai Composite Index gained 1.1 percent to 3,346.97 points, thanks to strong performances in the non-ferrous metals and consumer sectors. The smaller Shenzhen Component Index gained 0.7 percent to finish at 13,850.83.

Combined turnover on the two bourses came to 801.1 billion yuan (US$121.7 billion), compared with 727.1 billion yuan in the previous session.

China’s factory output rose faster than expected in October and retail sales continued to recover although at a slower pace than forecast.

China's value-added industrial output, an important economic indicator, was up 6.9 percent year on year in October, the same as in September, according to National Bureau of Statistics figures.

Investors were also optimistic after China and 14 other countries agreed to set up the world’s largest trading bloc, encompassing nearly a third of all economic activity.

The Regional Comprehensive Economic Partnership, or RCEP, was signed virtually on the sidelines of the annual summit of the 10-nation Association of Southeast Asian Nations.

Guotai Junan Securities said the agreement would promote China's exports and economic development and create long-term benefits for the stock market. 

It suggested investors pay attention to industries such as non-ferrous metals, chemicals and building materials.

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