Chinese stocks rose for the first time in six days, led by companies whose earnings are least vulnerable to economic growth.
ZTE Corporation, China’s second-largest maker of phone network equipment, paced gains by telecommunication shares after saying it expects a “large” number of patents granted in Europe next year.
Tasly Pharmaceutical Group Company surged to a record as drugmakers climbed. China Resources Gas Group Limited led energy companies higher in Hong Kong after posting higher earnings.
Bloomberg News reports that the Shanghai Composite Index closed at 0.3 per cent higher at 2,270.28, following a five-day, 3.6 per cent losing streak.
Trading volumes in the measure were 35 per cent lower than the 30-day average. The CSI 300 Index rose by 0.3 per cent to 2,534.27. The Hang Seng China Enterprises Index climbed by 0.6 per cent after earlier falling more than 10 per cent from its February 1 peak.
“Concerns about the slowing recovery and potential inflation threat still persist,” said Li Jun, a strategist at Central China Securities Company in Shanghai. “As long as these concerns remain, stock-market rebounds will be weak.”
Concern the government will tighten monetary policy at the same time as economic expansion slows have dragged Chinese stock indexes down from their highs for the year, with the Shanghai index sliding by 6.7 per cent since February 6.