China stocks close up ahead of record May Day holiday rush

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates to market close) SHANGHAI, April 28 (Reuters) - China stocks rose on Friday ahead of an expected record-high travel rush over the Labour Day holiday, with information technology (IT) and financials shares leading the gains. Investor sentiment was also helped after the top decision-making Politburo meeting held on Friday said proactive fiscal policy should be stepped up.


** China's blue-chip CSI300 Index closed up 1%, while the Shanghai Composite Index finished 1.1% higher.
** Hong Kong's benchmark Hang Seng Index edged up 0.3%, while the China Enterprises Index added 0.4%.
** For the week, the CSI 300 Index was little changed, while the Hang Seng benchmark slipped 0.9%.
** "Investor sentiment stabilized somewhat as consumption recovery stays on track and concerns over COVID-19 resurgence lessen," Morgan Stanley said in a note.
** The brokerage also said the sentiment could incrementally improve further if there is positive holiday data, more signs of corporate earnings revisions bottoming out, and U.S.-China relations stabilizing with signs of direct communication channels being re-established.
** Authorities are expecting 19 million trips to be made across China's vast railway network on Saturday, the first day of the five-day holiday, which would be the highest number of rail trips made in a single day in the country's history.
** Financials firms and consumer staples gained 1.6% and 1.1%, respectively. Ping An Insurance Group Co of China Ltd extended climb following a 10% jump in the previous session on better-than-expected first-quarter earnings.
** IT firms climbed 2.4%, while media stocks jumped more than 8% following corrections in previous two sessions, amid frenzy around Chinese equivalents of OpenAI's ChatGPT chatbot, where analysts had warned of risks of bubble.
** China's banking and insurance regulator said it would enhance credit support and lower the actual financing costs of small and micro enterprises this year to better support economic recovery.
** White House National Security Advisor Jake Sullivan said on Thursday the United States is not looking to decouple its economy from the Chinese economy, saying, "We're not cutting off trade."
** Tech giants listed in Hong Kong rose 1%. (Reporting by Shanghai Newsroom; editing by Uttaresh Venkateshwaran and Varun H K)

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