China stocks ends higher after cenbank injects liquidity

SHANGHAI: China stocks ended higher on Tuesday, with healthcare and new energy firms leading gains, after the country's central bank pumped in more funds to support economic growth.

The blue-chip CSI300 index rose 1.1%, to 4,600.10, while the Shanghai Composite Index gained 0.5% to 3,446.09 points.

The People's Bank of China (PBOC) injected 300 billion yuan ($47.19 billion) through medium-term loans into the financial system on Tuesday, more than markets had expected, while keeping the interest rate unchanged.

The PBOC on Friday said it would keep liquidity reasonably ample and step up financing support for key sectors and weak links of the economy in its fourth-quarter implementation report.

"Stock indexes dropped in previous session despite the central bank report, which reflects downward risk appetite in the market," said Zhang Siyi, a stock index futures analyst at Nanhua Futures. "While indexes played catch-up today as the PBOC injected more liquidity."

Zhang added valuations of main indexes are still relatively low, which leaves room for further rises, while investors still have to pay attention to Fed rate increases.

China's start-up market Chinext Price Index jumped roughly 3%.

The healthcare sector, semiconductors and new energy shares gained between 3.7% and 4.2%.

The information technology sub-index added 2.6%, while the machinery industry rose 3.7%.

However, shares in tourism and coal firms lost 2.8% and 2.2%, respectively.