Updated April 15th, 2024 at 10:26 IST

Chinese stocks rally on new guidelines; Hong Kong shares decline

On Friday, China's securities regulator unveiled draft rules intended to enhance oversight of company listings, delistings, and computer-driven program trading.

Reported by: Business Desk
Stock market | Image:Pixabay
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China stock market: China's stock market witnessed a positive start to the week, with major indexes posting gains as investors reacted favorably to the introduction of new guidelines aimed at bolstering the country's capital market. However, Hong Kong shares experienced a decline in contrast.

On Friday, China's securities regulator unveiled draft rules intended to enhance oversight of company listings, delistings, and computer-driven program trading. This initiative is seen as a proactive step to fortify the stock market and safeguard investors' interests.

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Lei Meng, a strategist at UBS, expressed optimism regarding the updated policies, highlighting their potential to foster the long-term healthy development of the capital market, elevate the quality of listed companies, and instill confidence among investors.

At the midday break, the Shanghai Composite index surged by 1.21 per cent to reach 3,055.99 points. The blue-chip CSI300 index also registered a notable increase of 1.9 per cent, with the financial sector sub-index climbing by 1.68 per cent, the consumer staples sector rising by 2.36 per cent, the real estate index advancing by 1.01 per cent, and the healthcare sub-index jumping by 1.43 per cent.

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In contrast, Chinese H-shares listed in Hong Kong experienced a decline of 0.41 per cent, with the Hang Seng Index slipping by 0.73 per cent to 16,599.34.

Meanwhile, other indexes in China demonstrated mixed performances, with the smaller Shenzhen index rising by 0.26 per cent, the start-up board ChiNext Composite index surging by 2.1 per cent, and Shanghai's tech-focused STAR50 index climbing by 1.91 per cent.

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Across the region, MSCI's Asia ex-Japan stock index weakened by 0.85 per cent, while Japan's Nikkei index declined by 1.04 per cent.

In currency markets, the yuan was marginally weaker, quoted at 7.2386 per US dollar.

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Among the top gainers in the Shanghai Composite index were Shaanxi Construction Machinery Co Ltd, Wolong Resources Group Co Ltd, and Shanghai Shyndec Pharmaceutical Co Ltd, each posting significant gains.

Conversely, the biggest percentage decliners among H-shares included SenseTime Group Inc, Li Ning Co Ltd, and Xpeng Inc.

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(With Reuters inputs.)

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Published April 15th, 2024 at 10:26 IST