SHANGHAI, March 17 (Reuters) - China stocks ended flat on Wednesday as investors shifted focus to the outcome of a U.S. Federal Reserve policy meeting, to see if the central bank could start raising interest rates sooner than expected.
Fed policymakers are expected this week to forecast that the U.S. economy will grow in 2021 at the fastest rate in decades as the COVID-19 vaccination campaign gathers pace and a $1.9 trillion relief package washes through to households.
At the close, the Shanghai Composite index was down 0.03% at 3,445.55, while the blue-chip CSI300 index was up 0.42% to 5,100.86.
The financial sector sub-index was lower by 1.42%, the consumer staples sector rose 1.58%, the real estate index fell 0.96% and the healthcare sub-index gained 0.49%.
The smaller Shenzhen index ended up 0.97% and the start-up board ChiNext Composite index was higher by 1.198%.
Gains were driven by agricultural shares after the government unveiled measures to support the development of Taiwan-funded companies in agriculture and forestry in mainland China.
The sector also gained support after the central Henan province said it would strictly prevent illegal genetically modified seeds from entering the market this year.
At the close, Winall Hi-tech Seed Co Ltd jumped 7.7%, Hefei Fengle Seed Co Ltd leapt 6.4%, and Zhongnongfa Seed Industry Co Ltd jumped 4.9%.
Some investors said they would closely watch the first high-level, in-person contact later this week between Beijing and Washington since U.S. President Joe Biden took office. Sino-U.S. relations have been one of the key factors influencing Chinese financial markets over the past few years.
Separately, Chinese companies targeted by a sweeping investment ban imposed by former U.S. President Donald Trump are considering suing the U.S. government after a federal judge on Friday suspended a similar blacklisting for Beijing-based smartphone maker Xiaomi.
精彩评论