INSUBCONTINENT EXCLUSIVE:
SHANGHAI: China stocks rebounded strongly for the second straight day on Wednesday as investors piled into property and consumer stocks,
betting Beijing will intensify stimulus measures to cushion the impact of an escalation in the Sino-US trade war.
The blue-chip CSI300 index
rose 1.3 per cent to 3,312.48, while the Shanghai Composite Index gained 1.1 per cent to 2,730.85.
China will use the continuing trade war
as an opportunity to replace imports, promote localisation and accelerate the development of high-tech products, state-run People's Daily
said in a front-page article on Wednesday.
The administration of US President Donald Trump said on Monday it would begin to levy new tariffs
of 10 per cent on $200 billion of Chinese products on Sept
24, with the tariffs to go up to 25 per cent by the end of 2018
China hit back, saying it will levy tariffs on about $60 billion worth of US goods, as previously planned, but cut the tariff rates.
Hannah
Anderson, Global Market Strategist, J.P
Morgan Asset Management, said recent Chinese policy changes will "significantly" mitigate the impact of the trade war on the Chinese
economy.
The CSI300 financial sector sub-index was higher by 1.24 per cent, the consumer staples sector up 2.14 per cent, the real estate
index up 4.61 per cent and healthcare sub-index up 1.63 per cent.
The smaller Shenzhen index ended up 1.36 per cent and the start-up board
ChiNext Composite index was higher by 1.1 per cent
Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.94 per cent, while Japan's Nikkei index closed up 1.08 per cent
At 07:25 GMT, the yuan was quoted at 6.8562 per US dollar, 0.08 per cent firmer than the previous close of 6.8615
The largest per centage gainers in the main Shanghai Composite index were Changchun Sinoenergy Corp, up 10.11 per cent, followed by Nanjing
Kangni Mechanical Electrical Co Ltd, gaining 10.08 per cent and Jiangsu Rutong Petro-Machinery Co Ltd, up by 10.02 per cent.
The largest
per centage losses in the Shanghai index were Pengxin International Mining Co Ltd down 10.03 per cent, followed by Sichuan Golden Summit
Group Joint Stock Co Ltd losing 9.98 per cent and China Resources and Environment Co Ltd down by 8.15 per cent
As of 07:25 GMT, China's A-shares were trading at a premium of 19.13 per cent over the Hong Kong-listed H-shares
