The CSI 300 Index of the nation’s biggest companies advanced 1.5 per cent to 3,591.61 at the local noon trading break in Shanghai, the most since February 29, while the Shanghai Composite Index added 1 per cent. Financial markets in Hong Kong are closed for the Easter holiday and will reopen on Tuesday.
EV makers and battery materials producers led the rally. BYD jumped 3.4 per cent to 209.89 yuan and Great Wall Motor added 4.5 per cent to 23.86 yuan, while Contemporary Amperex surged 4.1 per cent to 197.97 yuan. Ganfeng Lithium gained 8.3 per cent to 39.37 yuan and peer Tianqi Lithium rose 5.9 per cent to 50.79 yuan. Luzhou Laojiao jumped 4 per cent to 191.93, leading gains among liquor distillers.
China’s official PMI manufacturing index rose to 50.8 in March from 49.1 in February, the statistics bureau said on Sunday. The reading surpassed market consensus of 50.1 and ended five months of contraction in factory activity. A separate report by Caixin/S&P Global showed the manufacturing index rose to 51.1 in March, beating analysts’ forecasts.
Overseas investors’ appetite for Chinese stocks continues recovery in March
Overseas investors’ appetite for Chinese stocks continues recovery in March
“We have started to see some positive signs as expectations for domestic fundamentals and policies improved with the upbeat data and measures coming out,” Zhang Xingyao, a strategist at China Industrial Securities, said in a note on Sunday.
The CSI 300 Index rose 3.1 per cent this year through March 31, snapping a three-quarter losing streak to post the best quarter in a year. State-fund market intervention, Beijing’s policy support and regulatory crackdown on short-selling contributed to the turnaround.
Other key Asian markets were mixed on Monday. Japan’s Nikkei 225 tumbled 1.5 per cent and South Korea’s Kospi added 0.3 per cent. Australia’s financial markets are also closed for the Easter break.
