China’s major stock indexes edged up slightly as investors struggled to find trading catalysts in many global markets during the Christmas holiday week.
The CSI 300 Index, which tracks 300 of the largest stocks in Shanghai and Shenzhen, rose 0.1 per cent to 3,987.48 at the close. The gauge rose 1.5 per cent over the past three days. Christmas is not a public holiday in China.
The Shanghai Composite Index also gained 0.1 per cent. Technology and telecoms firms emerged as the best performers among the 10 industrial groups in the CSI 300, while utilities and energy stocks underperformed.
Chinese stocks have been rangebound over the past two months, as traders have been waiting for the effective implementation of the government’s stimulus measures. Investors expect Beijing to deliver more interest-rate cuts and raise the government borrowing limit next year to spur growth after a shift in policy from Beijing’s top officials.
The People’s Bank of China refrained from cutting borrowing costs on Wednesday, leading analysts to believe it is refraining from using its policy tools until later to deal with the economic impact of the Trump administration. Economic data from November showed China’s uneven recovery continued, with consumer spending languishing and producer-price deflation lingering.
“Despite previous attempts at stimulation through monetary easing and liquidity boosts, the results have been underwhelming,” said Stephen Innes, managing director of SPI Asset Management in Bangkok. “With deflation fears nipping at its heels, Beijing is poised to act decisively.”
The CSI 300 Index has risen 16 per cent this year after the government encouraged institutional buying by introducing new funding facilities and lifted home-purchase restrictions in most cities.
Big state-owned banks retreated from record highs: Industrial and Commercial Bank of China dropped 0.1 per cent to 6.93 yuan, Bank of China lost 0.2 per cent to 5.50 yuan and China Construction Bank slid 0.6 per cent to 8.83 yuan.
Polysilicon maker Tongwei slumped 5.7 per cent to 22.39 yuan and peer Xinjiang Daqo New Energy sank 1.7 per cent to 25.90 yuan. On Thursday, China kicked off futures trading for polysilicon, which is used to make solar panels, offering investors a hedge against an industry beset by overcapacity. On the Guangzhou Futures Exchange, seven contracts linked to polysilicon debuted, with a minimum 9 per cent margin requirement and a 7 per cent cap on daily movements in either direction.
One company made its trading debut after an initial public offering. Fangzheng Valve Group, a Wenzhou-based producer of parts for industrial plants, surged more than sixfold from its offer price to 21.70 yuan in Beijing.
Other Asia-Pacific markets were mixed. Japan’s Nikkei 225 climbed 1.1 per cent, buoyed by yen weakness, as the dovish stance of the nation’s central bank tempered expectations for an imminent interest-rate increase. Taiwan’s Taiex index added 0.1 per cent and South Korea’s Kospi retreated by 0.4 per cent.
Australia’s market was shut for Christmas. Hong Kong’s market was closed on Thursday for a public holiday and trading will resume on Friday.