SHANGHAI, April 26 China stocks extended gains
for a second day on Wednesday, as renewed optimism about the
U.S. economy and easing concerns about regulatory tightening on
the mainland lifted sentiment in global equity markets.
The blue-chip CSI300 index rose 0.1 percent to
3,445.18 points, while the Shanghai Composite Index
added 0.2 percent to 3,140.85 points.
Risk appetite improved as Asian stocks extended gains for a
fifth consecutive day following a strong finish to U.S. markets
The Nasdaq Composite hit a record high, while the Dow and
S&P 500 brushed against recent peaks as strong earnings
underscored the health of corporate America.
A rebound in China stocks has also been aided by perception
in some quarters that fears of Beijing's deleveraging campaign,
which had knocked down share prices to three-month lows, were
"China's deleveraging can only go gradually," Chi Lo,
economist at BNP Paribas Investment Partners wrote in a report
"Barring any renewed growth weakness, selective small
monetary tightening, amid a broad neutral monetary stance, will
remain as a tool to slow the pace of leveraging and set the
stage of eventual deleveraging."
Confirming such a monetary stance, China's politburo, a top
decision-making body of the ruling Communist Party, said late on
Tuesday that China will maintain proactive fiscal policy and
prudent monetary policy, according to the official Xinhua news
But there were signs investors were taking profits in
China's "nifty 50" stocks, including liquor maker Kweichow
Moutai and home appliance maker Gree Electric
Appliances, which eased from their record highs.
On the other hand, stocks expected to benefit from the
newly-launched Xiongan New Economic Zone continued to rebound
sharply, with over 10 Xiongan "concept" stock surging the
maximum allowed 10 percent.
Sector performance was mixed, while the tech-heavy start-up
board ChiNext still hovered near its lowest in one
and a half years, reflecting sustained weakness in small-caps.
(Reporting by Luoyan Liu and John Ruwitch; Editing by