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China stocks rise as export data shines

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SHANGHAI — China stocks rose on Wednesday, snapping a three-session losing streak, after data showed export growth beat analysts’ expectations, while recent rising COVID-19 cases clouded outlook for an economic recovery.

The CSI300 index rose 0.4% to 4,331.08 points at the end of the morning session, while the Shanghai Composite Index gained 0.4% to 3,293.29 points.

The Hang Seng index added 0.6%, up to 20,974.99 points. The Hong Kong China Enterprises Index gained 0.4%, to 7,222.24.

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** Asian stocks also gained, taking back some of their recent losses ahead of a highly anticipated U.S. inflation report later in the global day.

** China’s yuan-denominated exports in the first half of this year increased 13.2% from a year earlier, while imports rose 4.8%.

** “China’s export growth surprised on the upside in June, as economic activities resumed after lockdown ended in Shanghai,” said Zhiwei Zhang, Chief Economist at Pinpoint Asset Management.

** However, “the current outbreak in Shanghai and some other cities again cast uncertainty to the economic recovery in Q3,” he added.

** China’s commercial hub of Shanghai is racing to contain a nagging outbreak of dozens of new daily infections which was already causing damage to the economy and unnerving residents.

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** Mainland-listed real estate developers rose 2%, while mainland developers traded in Hong Kong tumbled 2.8%.

** Homebuyers of dozens of unfinished property projects across the country said they would suspend their mortgage payments, demanding resumption of the projects. Analysts warned this phenomenon might spread to more projects, dent sentiment and put more pressure on the sector.

** Tourism and new energy shares gained more than 1.7% each, while banks and energy companies both lost 1.6%.

** Tech giants listed in Hong Kong added 1.8%, after a slump in the two previous sessions.

** Tianqi Lithium, one of the world’s top producers of lithium chemicals, fell 3.5% in its Hong Kong debut, after the company raised $1.71 billion in the city’s biggest listing so far this year.

(Reporting by Shanghai Newsroom; Editing by Krishna Chandra Eluri)



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