China stocks hold steady, despite regional tensions

Source:Reuters-Global Times Published: 2017/9/4 17:58:39

China stocks held steady on Monday, with investors seemingly unruffled by North Korea's latest nuclear test.

Chinese equity markets, which have in the past largely ignored saber-rattling on the Korean Peninsula, remained calm, underpinned by resource shares as commodity prices continue to surge.

The blue-chip CSI300 index rose 0.39 percent to 3,845.62 points, while the Shanghai Composite Index gained 0.37 percent to 3,379.58 points.

Investors at home and abroad appear to be increasingly optimistic about China's economy as they start to plough more money into the nation's stock markets at a time when the yuan has also climbed to 16-month highs against the dollar.

Overseas investors spent 27 billion yuan ($4.12 billion) buying mainland shares in August via the cross-border connect schemes, according to State media, representing the biggest monthly inflow this year.

Sector performance was mixed. Banking stocks rose 0.9 percent, snapping a three-day losing streak. Metal stocks surged as commodity prices continued to soar on the back of the Chinese government's fresh measures against pollution that will likely further reduce production capacity.

An index tracking China's steelmakers surged more than 4 percent after the country's steel rebar futures jumped to their highest in four-and-a-half years on concerns that a furnace fire might spark a new round of safety inspections and closures, tightening supply.



Posted in: MARKETS,ECONOMY

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