China stocks edge up, helped by a 2nd day of gains for tech shares
SHANGHAI: China stocks edged up on Tuesday, aided by renewed interest in technology shares in late trading after a listless morning session.
The blue-chip CSI300 index ended up 0.2 per cent, to 3,453.96, while the Shanghai Composite Index gained 0.3 per cent to 3,242.41 points.
The tech-heavy ChiNext board outperformed, rising 0.8 per cent to a two-month high.
Investors piled into tech shares for the second day following Premier Li Keqiang's Work Report on Sunday that identified innovation as a key part of China's economic restructuring.
Gao Ting, UBS head of China strategy, forecast a moderate rise in China stocks this year, as optimism about economic recovery would be partly offset by tighter liquidity conditions.
"Profits at Chinese listed companies are expected to grow around 6 per cent in 2017, which would underpin the stock market," Gao said in a telephone interview on Tuesday.
"But liquidity will likely be a bit tighter, so there's little chance of a lift in stock valuations."
Gao expects the CSI300 to hit 3,750 this year - roughly 9 per cent above the current level - and cyclical sectors and banking stocks to continue to benefit from the economic recovery.
The blue-chip CSI300 index ended up 0.2 per cent, to 3,453.96, while the Shanghai Composite Index gained 0.3 per cent to 3,242.41 points.
The tech-heavy ChiNext board outperformed, rising 0.8 per cent to a two-month high.
Investors piled into tech shares for the second day following Premier Li Keqiang's Work Report on Sunday that identified innovation as a key part of China's economic restructuring.
Gao Ting, UBS head of China strategy, forecast a moderate rise in China stocks this year, as optimism about economic recovery would be partly offset by tighter liquidity conditions.
"Profits at Chinese listed companies are expected to grow around 6 per cent in 2017, which would underpin the stock market," Gao said in a telephone interview on Tuesday.
"But liquidity will likely be a bit tighter, so there's little chance of a lift in stock valuations."
Gao expects the CSI300 to hit 3,750 this year - roughly 9 per cent above the current level - and cyclical sectors and banking stocks to continue to benefit from the economic recovery.
