SHANGHAI, Oct 16 (Reuters) – China stocks were little changed on Friday but posted a weekly gain, buoyed by fresh policy support and upbeat data that pointed to an economic recovery from the COVID-19 fallout.
** The blue-chip CSI300 index fell 0.2% to 4,791.68, while the Shanghai Composite Index added 0.1% to 3,336.36.
** The tech-heavy start-up board ChiNext slipped 0.5%, while the STAR50 fell 1.1%.
** For the week, the CSI300 gained 2.4% and logged its third straight weekly gain, while SSEC was up 2%.
** “The market found support in the country’s relatively robust consumption recovery during the Golden Week holiday,” said Zheng Zichun, an analyst with AVIC Securities.
** Investors cheered latest upbeat trade data showing China’s imports grew at their fastest pace this year in September. New bank loans grew more than expected in September, fuelled by a jump in corporate loans.
** Beijing’s continued policy support for its capital markets also helped boost risk appetite earlier in the week.
** China said it will extend its initial public offering (IPOs) reforms to all parts of its stock markets at an appropriate time.
** That came after China’s state council published last Friday the Opinion on Further Improving the Quality of Listed Companies, which includes exploring more long-term evaluation mechanisms for institutional investors to attract more mid and long-term funds.
** But analysts urged caution given various uncertainties.
** The A-share market could remain range-bound ahead of the U.S. elections, which could cause fluctuations in the U.S. stock market, while investors are still cautious over geopolitical tensions including Sino-Indian border dispute and the tensions in Taiwan strait, AVIC Securities’ Zheng said.
** Morgan Stanley analysts said in a report that investors should keep an eye on the U.S. election outcome, China’s fifth plenum later this month and earnings results in the third quarter.
SOURCE : https://www.reuters.com/article/china-stocks-close/chinas-blue-chip-stocks-post-third-weekly-gains-on-upbeat-data-policy-support-idUSAZN00HC2H