China shares rise as slowing factory deflation boosts recovery hopes

China shares rise as slowing factory deflation boosts recovery hopes

China shares rise as slowing factory deflation boosts recovery hopes

2 hours ago

Picture used for illustrative purpose. AFP

China shares ended higher on Monday, turning around from early losses as data signalling slow factory deflation reinforced hopes of an economic recovery from the pandemic-driven lockdown.

The Shanghai Composite index was up 0.75% at 3,379.25, after earlier falling as much as 0.57%. The blue-chip CSI300 index was up 0.36%, clawing back from a 1.31% fall.  The CSI financial sector sub-index ended 1.34% higher, the consumer staples sector added 0.11%, the real estate index jumped 3.08% and the healthcare sub-index closed 0.62% lower.

The broader market gains came after data showed that China's factory deflation eased in July, driven by a rise in global oil prices and as industrial activity climbed back towards pre-coronavirus levels, adding