Shanghai stock benchmark hits fresh decade high, economic data in focus

Investors are awaiting a key set of China’s data releases, such as retail sales, industrial output, and investment, on Friday. (EPA Images pic)

HONG KONG: Chinese stocks edged up on Thursday, led by gains in new energy sector shares, while investors awaited key economic data due on Friday.

The Shanghai Composite index was up 0.7% at 4,029.50 to its highest since 2015 and ended a two-day decline. China’s blue-chip index climbed 1.2%.

Leading gains, the CSI New Energy Vehicle Index surged 6.2% to a three-year high, and the New Energy Index rallied 4.7% in its biggest single-day gain in two weeks.

Battery maker CATL surged 7.6% to near a record high last seen in October, and miner Tianqi Lithium jumped 10%.

China’s Ministry of Industry and Information Technology will announce a comprehensive plan to boost the new energy battery sector and promote its infrastructure usage, a senior official said on Thursday.

The artificial intelligence sector and chip shares climbed 0.6% and 0.7%, respectively, to recover some losses seen earlier this week.

“The market will likely continue consolidating and building momentum around the 4,000-point level in the short term, which is beneficial for solidifying the market foundation and accumulating strength for subsequent movements,” analysts at Yingda Securities said in a note.

“It could help set the stage for further breaking new highs for the rest of the year.”

In Hong Kong, the benchmark Hang Seng Index added 0.6%to a one-month high. The Hang Seng China Enterprises Index  also reversed earlier losses to gain 0.6%.

Alibaba rallied 3.3% after a Bloomberg News report that the firm is preparing a revamp of flagship AI app to resemble ChatGPT.

Elsewhere, investors are awaiting China’s key set of data releases such as retail sales, industrial output, and investment on Friday, to get a sense of the economic recovery and any implications for the policy outlook.

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