Business as usual indications from the authorities have helped Chinese stock markets move to highs.
China’s key stock index rose 1.23 percent on Thursday to its highest close in more than two months, with investors encouraged by a pair of strong business surveys and a central bank statement that it would maintain its loose monetary policy.
The Shanghai Composite Index ended the day up at 3,147.416 points, its highest close since Jan. 21 and marking a positive start to the second quarter after a 5 percent drop in the first three months of the year.
China’s central bank on Wednesday reaffirmed its appropriately loose monetary stance but said it would implement the policy more flexibly.
Two purchasing managers’ indexes also showed China’s manufacturing sector picked up steam in March as orders climbed, suggesting brisk first-quarter economic growth.
The March PMIs had a definite impact on the market, said Cao Xuefeng, analyst at Western Securities.
The central bank report also reassured the market that a rise in interest rates in April is very unlikely.
Gaining Shanghai stocks overwhelmed losers by 828 to 71, while turnover rose to 153 billion yuan ($22.42 billion) from Wednesday’s 122 billion yuan.
Baoshan Iron & Steel Co, one of China’s two top steelmakers, rose 1.52 percent to 8.00 yuan and was one of the day’s 10 most active shares after it announced a slightly stronger-than-expected net profit in the fourth quarter, boosted by demand from China’s booming auto and appliance sectors. ($1=6.825 Yuan)