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China stocks rise on consumer, IT sectors; Hang Seng up

reuters.com · 12/29/2021 23:56
China stocks rise on consumer, IT sectors; Hang Seng up

SSEC up 0.8%, CSI300 1%, HSI 0.2%

FTSE China A50 +1.0%

- China's equities rebounded on Thursday, led by consumer staples and information technology stocks, as sentiment was lifted by government pledges to focus on a consumption recovery and reduce certain income tax rates.

** At the midday break, the Shanghai Composite index .SSEC was up 0.82% at 3,626.58 points, while the blue-chip CSI300 index .CSI300 was up 1.03%.

** China's commerce ministry on Wednesday vowed to focus on the continued recovery of consumption in 2022, and attract more foreign investments. nB9N2SO01J

** The country also said it would extend some favourable income tax policies to ease the burden for middle- and low-income groups, state media reported, quoting a cabinet meeting chaired by Premier Li Keqiang. nL1N2TE0GS

** The measure is expected to cut taxes by 110 billion yuan ($17.27 billion) a year. nL1N2TE0GS

** Consumer staples .CSICS gained 0.9%, with liquor makers .CSI399997 rebounding 1.33% from losses in the previous session.

** Season-wise, analysts expect liquor, food and beverage sales to gain momentum during the upcoming new year and Chinese Spring Festival holidays, benefiting related sectors.

** Among other gaining sectors, the information and technology sector .CSIINT was up 2%, the media subindex .CSI3999971 surged nearly 5% and semiconductor shares .CSIH30184 added 2.8%.

** Chinese H-shares listed in Hong Kong .HSCE rose 0.13% to 8,109.6, while the Hang Seng Index .HSI was up 0.21% at 23,134.88.

** The Hang Seng inched up as tech giants rebounded, with the Hang Seng Tech Index .HSTECH up 0.2%. Heavyweights Tencent TCEHY and Meituan MPNGY went up 0.6% and 0.9%, respectively.

** Hong Kong shares of SenseTime Group WHLKY, the Chinese artificial intelligence start-up, jumped as much as 23% from its market debut in Hong Kong on Thursday. nL1N2TF018

** But mainland developers listed in Hong Kong .HSMPI lost 0.7% on Thursday, with Evergrande Group EGRNY tumbling 8.5% after the embattled real estate developer did not pay offshore coupons due earlier this week. nL1N2TF01X

($1 = 6.3687 Chinese yuan renminbi)

(Reporting by Beijing Newsroom and Shanghai Newsroom; Editing by Devika Syamnath)

((cheng.leng@thomsonreuters.com; +8610-5669-2129;))