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China stocks end higher as IT, financial sectors gain

reuters.com · 12/30/2021 02:22
China stocks end higher as IT, financial sectors gain

SSEC 0.6%, CSI300 0.8%, HSI 0.4%

CSI300 posts best daily gain since Dec.9

FTSE China A50 +0.7%

- China stocks end higher on Thursday, led by information technology, financial and consumer firms, as sentiment was lifted by government pledges to focus on a consumption recovery and reduce certain income tax rates.

** At the close, the Shanghai Composite index .SSEC was up 0.62% at 3,619.19 points, posting its biggest daily percentage gain since Dec. 21.

** The blue-chip CSI300 index .CSI300 was up 0.8%, its best daily performance since Dec.9.

** Among gaining sectors, information and technology stocks .CSIINT were up 1.7%, the media subindex .CSI399971 surged by 5.4% and semiconductor shares .CSIH30184 added 2.6%. Consumer staples .CSICS gained 0.8%.

** China's commerce ministry on Wednesday vowed to focus on the continued recovery of consumption in 2022. 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.

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

** 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.

($1 = 6.3684 Chinese yuan renminbi)

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

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