China stocks rise on hopes of policy easing

Reuters2021-08-09

Aug 9 (Reuters) - China stocks rose on Monday, with a strong rebound in blue-chip stocks offsetting losses in highly-valued tech shares, as signs of slowing economic growth fanned hopes of fresh policy easing.

** The blue-chip CSI300 index rose 1.3% to 4,985.56, while the Shanghai Composite Index rose 1% to 3,494.63.

** China's factory gate inflation climbed 9% in July, rising at a faster clip from the previous month and above expectations, adding to strains on an economy losing recovery momentum. (nL1N2PG01P)

** Domestic export growth unexpectedly slowed last month, following outbreaks of COVID-19 cases. Global banks including JPMorgan, Morgan Stanley and Goldman Sachs reduced forecasts for China's GDP growth.

** "We expect another 50bp RRR cut this year, while local government bond issuance could accelerate in the coming months to support infrastructure investment," Morgan Stanley wrote, citing the need for more policy support to stabilize the job market.

** China's consumer staples sector and real estate indexes led the increase, jumping 3.09% and 5.80% respectively.

** But new energy and semiconductor companies fell, as Chinese regulators said last week they would continue to closely monitor the price and market order of chips. (nL1N2PA06O)

** State-owned Westone Information Industry Inc surged 10% to 31.52 yuan ($4.87), its near two-year high as Reuters reported last Saturday that it would be the main third-party company to manage Chinese ride-hailing firm Didi Global Inc's massive data stored domestically.

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