China`s blue-chip stocks post third weekly gains on upbeat data, policy support
Friday, October 16, 2020       15:06 WIB

SHANGHAI, Oct 16 (Reuters) - China stocks were little changed on Friday but posted a weekly gain, buoyed by fresh policy support and upbeat data that pointed to an economic recovery from the COVID-19 fallout.
The blue-chip CSI300 index fell 0.2% to 4,791.68, while the Shanghai Composite Index added 0.1% to 3,336.36.
The tech-heavy start-up board ChiNext slipped 0.5%, while the 50 fell 1.1%.
For the week, the CSI300 gained 2.4% and logged its third straight weekly gain, while SSEC was up 2%.
"The market found support in the country's relatively robust consumption recovery during the Golden Week holiday," said Zheng Zichun, an analyst with AVIC Securities.
Investors cheered latest upbeat trade data showing China's imports grew at their fastest pace this year in September. New bank loans grew more than expected in September, fuelled by a jump in corporate loans.
Beijing's continued policy support for its capital markets also helped boost risk appetite earlier in the week.
China said it will extend its initial public offering (IPOs) reforms to all parts of its stock markets at an appropriate time.
That came after China's state council published last Friday the Opinion on Further Improving the Quality of Listed Companies, which includes exploring more long-term evaluation mechanisms for institutional investors to attract more mid and long-term funds.
But analysts urged caution given various uncertainties.
The A-share market could remain range-bound ahead of the U.S. elections, which could cause fluctuations in the U.S. stock market, while investors are still cautious over geopolitical tensions including Sino-Indian border dispute and the tensions in Taiwan strait, AVIC Securities' Zheng said.
Morgan Stanley analysts said in a report that investors should keep an eye on the U.S. election outcome, China's fifth plenum later this month and earnings results in the third quarter. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

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