SHANGHAI, June 24 (Reuters) - China stocks closed up to its
highest level since early March on Friday, gaining for a fourth
straight week, as the country stepped up effort to stimulate a
COVID-hit economy with the infusion of fresh capital into the
banking system to keep liquidity stable.
The blue-chip CSI300 index rose 1.2% to 4,394.77,
while the Shanghai Composite Index gained 0.9% to
The Hang Seng index rose 2.1% to 21,719.06, while the
China Enterprises Index gained 2.2% to 7,629.06 points.
** For the week, the CSI300 Index rose nearly 2%, while the
Hang Seng Index added 3.1%.
** The People's Bank of China (PBOC) injected 60 billion
yuan ($8.96 billion) worth of seven-day reverse repos, as demand
for cash for the end of the first half of the year started to
** Global equity markets rose, as commodities including
copper and oil dropped, offering a salve for inflation fears.
** Refinitiv data showed strong inflows from foreign
investors, totalling more than 13.1 billion yuan ($1.96 billion)
through the Stock Connect's Northbound leg.,
** Chinese battery giant CATL jumped nearly 5%
as it will start mass production next year of its latest
generation product, with greater efficiency that lets electric
cars drive longer distances on each charge.
** New energy firms added 2.2%, while shares in
defence and tourism went up more than
** Healthcare firms listed in mainland China
gained 2.9%, while peers trading in Hong Kong surged
** "After a swift rebound led by the reopening theme and
high-beta stocks/laggards recently, we expect the market to
consolidate in the next two months on a mild economic recovery
and earnings downgrades," said Meng Lei, China equities
strategist at UBS Securities, as the CSI300 has risen roughly
15% since a trough in late April.
** He added market pullback in the next two months would
likely provide an attractive opportunity and a more material
valuation re-rating from late third quarter, when broad estimate
cuts potentially come to an end.
** Tech giants listed in Hong Kong were up 4.1%,
with e-commerce giant Alibaba rising 5.5% amid hints
that China's technology crackdown is abating.
(Reporting by Shanghai Newsroom; Editing by Shailesh Kuber)