China Shares Extend Gains as State Measures Lift Sentiment
The CSI 300 rose for a second session, while regulatory support and election-related risk shifts shaped investor sentiment.
Key takeaways
- The CSI 300 rose 0.4% to 4,115.93 by mid-session.
- The STAR 50 gained 2.1% after rising 9.9% the previous session.
- Foreign holdings of Chinese shares under the QFII program topped 270 billion yuan at September-end.
China’s CSI 300 rose 0.4% to 4,115.93 by mid-session on Wednesday, extending its rebound for a second day. The index had gained 2.3% in the previous session, while the chip-heavy STAR 50 advanced 2.1% after a 9.9% jump.
Ekonomim linked the gains to increased state support and a shift in risk sentiment after the US congressional elections. China’s financial regulators restarted a swap facility to add market liquidity and cut the interest rate on a relending program for share buybacks.
The report said Democratic control of Congress also fueled optimism that prolonged conflicts in the Middle East might end, supporting global risk appetite. However, assessments cited in the report warned that tighter US technology export restrictions could accelerate Beijing’s efforts to replace foreign products with domestic alternatives.
Other markets moved sharply: Brent crude fell more than 9% to about $93 a barrel, while the 10-year US Treasury yield dropped 4.1 basis points to 4.85%. Gold rose to $4,100 an ounce.
China’s exchanges accepted six IPO applications in the second half of the year, compared with 242 in the first six months, according to Ekonomim. Meanwhile, foreign holdings of Chinese shares under the Qualified Foreign Institutional Investor program rose 80% year over year to more than 270 billion yuan at the end of September.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
