Stocks up for 3rd session on growth expectations

Source:Reuters-Global Times Published: 2017/9/5 20:38:39

Chinese shares inched higher for the third session to fresh 20-month highs, apparently unfazed by tensions over North Korea, and bolstered by expectations economic growth will largely remain solid through year-end, despite tighter policy.

Investors are also adding to positions on expectations that further reforms will be announced after the 19th National Congress of the Communist Party of China, which convenes in mid-October. The meeting will set out the government's economic plans for the next five years.

The blue-chip CSI300 index rose 0.30 percent to 3,857.05 points, and the Shanghai Composite Index increased 0.14 percent to 3,384.32 points.

Following stronger-than-expected factory activity surveys released last week, August data is expected to suggest that China's momentum may hold up through the end of the year despite tighter policy.

Adding to the upbeat mood, a private business survey published on Tuesday showed that China's services sector expanded at a faster clip in August.

"Economic activity in China continues to run well, so the authorities can keep their focus on deleveraging and other reforms," economists at ING wrote in a research note.

"We believe that the government is setting the scene for the Politburo, given that the economy is already in 'reform mode'. And this is already having positive impacts on the economy and markets. Apart from that, the stronger yuan continues to stem capital outflows."

More investors have climbed on board after the Shanghai Composite managed to breach and hold above a stubborn resistance level at 3,300 on August 25.

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