Stocks steady, NEV shares lend support

Source:Reuters-Global Times Published: 2017/9/11 17:53:40

Chinese mainland stocks were steady on Monday, as investors cheered the government's plan to look into banning petrol fuel cars.

The blue-chip CSI300 index was unchanged at 3,825.65 points, while the Shanghai Composite Index gained 0.33 percent to 3,376.42 points.

China's new-energy vehicle (NEV) firms saw shares surge, extending recent strong gains, after a government official said over the weekend that China had begun looking at a ban on traditional petrol-engine cars.

An index tracking NEV makers shot up 5.60 percent to a record high since its launch in early 2016, having gained more than 20 percent this year.

Investors are also assessing the sustainability of China's economic recovery, after data showed government spending rose at its slowest monthly pace in 10 months in August.

China has pledged a proactive fiscal policy to support the economy, and analysts have credited the government's pump-priming as one of the key factors underpinning solid growth this year.

Sector performance was mixed. Gains were led by material firms, while real estate companies weighed.

An index tracking major property developers dropped over 1 percent, led by Vanke.

China Molybdenum, one of the country's largest molybdenum and tungsten producers, surged 9.91 percent to a record high, as investors expect the minor metals maker to benefit from the country's future ban on petrol cars.

The firm has gained 130 percent this year.

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