China’s major share indexes finished trade at two-month closing highs on Wednesday, as consumer firms extended their rally on hopes for a demand recovery on easing COVID-19 restrictions.
At the close, the blue-chip CSI300 index was up 0.97 percent at 4,219.81, its highest close since April 8. The Shanghai Composite index rose 0.68 percent to 3,263.79, its highest close since April 6.
The CSI consumer staples sector led gains, rising 2.01 percent, while the financial sector sub-index added 0.62 percent and the healthcare sub-index rose 1.89 percent.
Foreign investors lent support, with Refinitiv data showing inflows of more than 8.7 billion yuan through the Northbound leg of the Stock Connect program.
Analysts at BNP Paribas said equity investors were more optimistic about China’s growth stabilization policies as COVID-19 lockdowns eased while sounding a note of caution.
“Our economists expect the government to maintain the principle of dynamic zero-COVID, albeit revise the implementation to take account of the recent growth slowdown and minimize the economic impact,” they said.
“However, the highly infectious nature of the Omicron variant suggests the equity market might be more susceptible to more start-stop cycles in the near term.”
The smaller Shenzhen index ended up 0.52 percent and the start-up board’s ChiNext Composite index was higher by 0.85 percent.
Shares of index heavyweight Contemporary Amperex Technology Co Ltd (CATL), a supplier to Tesla, crawled back from a drop of more than 7 percent to end 0.22 percent higher, relieving pressure on the broader index.