HONG KONG, July 28 – The Chinese stock market edged up on Tuesday on expectations that the world’s second-largest economy was on track for a rebound, and that Beijing will keep its policy supportive. ** At the midday break, the Shanghai Composite index was up 0.6% at 3,224.47.
** China’s blue-chip CSI300 index was up 0.7%, with its financial sector sub-index trading flat, the real estate index up 0.1% and the healthcare sub-index down 0.1%.
** Chinese H-shares listed in Hong Kong rose 0.8%, while the Hang Seng Index rose 0.5% to 24,733.00.
** The smaller Shenzhen index was up 1% and the start-up board ChiNext Composite index was higher by 0.9%. The new tech-focused STAR 50 index added 1.5%.
** Deteriorating Sino-U.S. ties and abrupt consulate closures pushed Chinese equities to one of their worst daily falls since the first outbreak of the novel coronavirus earlier this year.
** But investors on Tuesday focused more on signs of an economic recovery from the record slump earlier this year. This week, China reported strong growth in June industrial profits, which rose the fastest in over a year.
** “The relatively high pressure on employment and the constant change in coronavirus pandemic mean policy will not rapidly tighten, and Sino-U.S. frictions will not change the trend of profits recovering in the second half,” analysts at Everbright Securities said in a note.
** Any correction from investors worrying too much about U.S.-China tensions or policy shifts would create good investment opportunities, they added.
** Investors will be watching Chinese President Xi Jinping’s speech at a meeting of the Asian Infrastructure Investment Bank (AIIB), scheduled to start at 0900 GMT.
** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.8%, while Japan’s Nikkei index was down 0.1%.
** The yuan was 0.07% weaker at 7.0028 per U.S. dollar.
(Reporting by Noah Sin; editing by Uttaresh.V)