China shares rebound on global stock gains, 'Two Sessions'
China shares rebounded strongly on Thursday after six consecutive losing sessions, partly due to the tremendous gains across the Western stock markets on Wednesday night.
The benchmark Shanghai Composite Index rose 1.22 percent to end at 3,296.09 points, while the smaller Shenzhen Component Index climbed 2.18 percent to 12,370.95 points.
The NASDAQ-style ChiNext Composite Index soared 2.67 percent to 2,635.19 points, and the STAR 50 Index closed 2.1 percent higher at 1,153.36 points.
On the two major bourses in Shanghai and Shenzhen, more than 3,600 listed firms posted gains in the session, data from Wind Information showed.
The upswing in Asian shares on Thursday followed Wall Street's gains, as planned diplomatic talks between Russia and Ukraine to end the ongoing conflict between the two countries buoyed sentiment.
Meanwhile, the ongoing 2022 Two Sessions – the annual sessions of the National People's Congress and the Chinese People's Political Consultative Conference – also provided a positive guidance for the stock market in general, according to Wang Zonghao, head of equity strategy research at UBS China.
The government work report presented during the sessions clarified the significance of stabilizing economic growth, employment, and expectations, with the GDP growth target this year set at 5.5 percent, higher than market expectations.
Fiscal policy, albeit a slightly lower budget deficit rate, is to be further eased this year, probably even in a significant manner, Wang said, adding that monetary policy will also tend to remain prudent with a proper and adequate level of liquidity supply.
"The macro policy directions could be a boon to the stock market in general," Wang noted. "Especially, stocks related to new energy and infrastructure could be among the big beneficiaries, while banks and Internet platform companies may see a negative impact."
Medical and pharmaceutical shares, especially those related to COVID-19 testing, led the gains on Thursday, when the Chinese mainland reported hundreds of new local COVID-19 cases since the new pandemic flare-up this week.
Wondfo Biotech listed on the ChiNext board surged by the daily cap of 20 percent, and Guangdong Hybribio Biotech Co jumped 18.5 percent.
The petrochemical industry was also among the biggest gainers on Thursday.
Rongsheng Petro Chemical Co and Zhejiang Hailide New Material Co, both listed on Shenzhen's main board, as well as Shanghai-listed Tongkun Group Co all soared by the maximum 10 percent.
In the biotechnology sector, shares related to power battery and daily chemicals performed strongly.
Another highlight on Thursday was Shanghai-based electric vehicle maker NIO Inc, whose shares began trading in a secondary listing on the Hong Kong exchange.
NIO shares reached an intraday high of 169.5 Hong Kong dollars (US$21.68) before retreating to close at HK$158.9, down 0.69 percent.