China stocks stable despite sell-off
SHANGHAI: China stocks steadied yesterday, aided by gains in cyclicals, even as investors hunted for bargains after an intense sell-off in small-caps in the previous session.
The blue-chip CSI 300 index rose 0.1 per cent, to 3,667.18 points, while the Shanghai Composite Index added 0.3 per cent to 3,187.57 points.
The tech-heavy start-up board ChiNext gained 0.7 per cent. On Monday, it tumbled 5.1 per cent to its lowest since January 2015.
On Monday, China reported its economy grew an annual 6.9 per cent in the second quarter, defying expectations for a slight loss of momentum.
The growth data helped the Shanghai SE 50 Index, or China's "nifty 50", hit a two-year high on Monday, helped by the growth data.
The cause for the divergent performances in the SE 50 and the start-up index was investors' preference for solid fundamentals, Haitong Securities said.
Analysts also expect MSCI's decision to include China shares in its key emerging markets index to further reinforce investors' focus on fundamentals.
Global fund managers are ramping up their presence in China, aiming to be ahead of next June's inclusion of mainland-listed stocks in MSCI's benchmark index that is expected to boost investment. - REUTERS