SHANGHAI, May 26 (Reuters) -
China shares ended higher on Tuesday as investors cheered a pledge by the central bank to strengthen policies aimed at reviving an economy paralysed by the coronavirus pandemic.
At the close, the Shanghai Composite index was 1.01 per cent higher at 2,846.55. It was the biggest one-day gain for the index since April 30.
The blue-chip
CSI300 index, up 1.13 per cent, also saw its biggest one-day rise since April 30. The financial sector sub-index rose 0.6 per cent, the consumer staples sector gained 0.1 per cent, the real estate index added 0.7 per cent and the healthcare sub-index finished 1.82 per cent higher.
China will strengthen its economic policy and continue efforts to lower interest rates on loans, central bank Governor Yi Gang said in an interview, adding that China's economic fundamentals remain unchanged despite many uncertainties.
However, highlighting risks caused by the pandemic, China's banking and insurance regulator said bad loans at banks now stand at a high level, and that asset quality at smaller banks will be under pressure this year.
The smaller Shenzhen index ended up 2.21 per cent and the start-up board ChiNext Composite index was higher by 2.956 per cent.
Around the region,
MSCI's Asia ex-Japan stock index was 1.86 per cent firmer, while Japan's Nikkei index closed up 2.55 per cent.
At 07:15 GMT, the yuan was quoted at 7.1338 per U.S. dollar, 0.03 per cent firmer than the previous close of 7.1361.
So far this year, the Shanghai stock index has fallen 6.7 per cent and the CSI300 has declined 5.5 per cent, while China's H-share index listed in Hong Kong has dropped 13.8 per cent. Shanghai stocks have declined 0.47 per cent this month.