China stocks climb as c bank seeks to stabilise yuan

Published: August 27, 2018 12:19:12 | Updated: August 30, 2018 10:30:29

File Photo (Reuters)

China stocks reached their highest levels in two weeks on Monday, buoyed by a stronger yuan after the central bank moved to keep the currency market stable.

The Shanghai Composite index rose 1.7 per cent to 2,776.08 in early afternoon trade while the China’s blue-chip CSI300 index was up 2.2 per cent.

The financial sector sub-index advanced 1.3 per cent. The consumer staples sector gained 3.3 per cent, while the real estate index was up 3.3 per cent and healthcare sub-index jumped 3.9 per cent.

Chinese H-shares listed in Hong Kong rose 2.5 per cent at 11,071.01, while the Hang Seng Index was up 2.0 per cent at 28,222.35, reports Reuters.

The yuan hovered at a 2-1/2-week high against the US dollar on Monday after China’s central bank revived a “counter-cyclical factor” in its daily fixing to support the currency, arresting a record 10-week slide that has rattled global markets.

The yuan was quoted at 6.8143 per US dollar, 47 pips firmer than the previous close of 6.819.

Airline shares were among the winners on Monday. China Southern Airlines gained 4.5 per cent and Air China was up 3.8 per cent.

The smaller Shenzhen index rose 2.3 per cent and the start-up board ChiNext Composite index was higher by 2.9 per cent.

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