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China stocks edge up, helped by a 2nd day of gains for tech shares
March 7, 2017 / 7:15 AM / 9 months ago

China stocks edge up, helped by a 2nd day of gains for tech shares

SHANGHAI, March 7 (Reuters) - China stocks edged up on Tuesday, aided by renewed interest in technology shares in late trading after a listless morning session.

The blue-chip CSI300 index ended up 0.2 percent, to 3,453.96, while the Shanghai Composite Index gained 0.3 percent to 3,242.41 points.

The tech-heavy ChiNext board outperformed, rising 0.8 percent to a two-month high.

Investors piled into tech shares for the second day following Premier Li Keqiang’s Work Report on Sunday that identified innovation as a key part of China’s economic restructuring.

Gao Ting, UBS head of China strategy, forecast a moderate rise in China stocks this year, as optimism about economic recovery would be partly offset by tighter liquidity conditions.

“Profits at Chinese listed companies are expected to grow around 6 percent in 2017, which would underpin the stock market,” Gao said in a telephone interview on Tuesday.

“But liquidity will likely be a bit tighter, so there’s little chance of a lift in stock valuations.”

Gao expects the CSI300 to hit 3,750 this year - roughly 9 percent above the current level - and cyclical sectors and banking stocks to continue to benefit from the economic recovery. (Reporting by Samuel Shen and John Ruwitch; Editing by Richard Borsuk) )

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