China stocks edge higher, tracking regional gains as Beijing pledges market support

By Reuters News4 hours ago Updated

SHANGHAI, Nov 9 (Reuters) - Mainland China stocks ended higher on Monday, tracking gains in regional peers, while Beijing called for more efforts to stabilise the market.

** At the close, the benchmark Shanghai Composite index .SSEC rose 0.3%, while the blue-chip CSI300 index .CSI300 inched up 0.1%.

** The smaller Shenzhen index .SZSC was unchanged for the day, the startup board ChiNext Composite index .CNT lost 0.3%, and Shanghai's tech-focused STAR50 index .STAR50 gained 0.3%.

** The gains followed a pledge by China's State Council on Friday to improve mechanisms to stabilise the capital market and enhance the stock market's inherent stability, state television CCTV reported.

** "China's economic data and equity performance have again breached policymakers' pain threshold, prompting fresh equity market support measures," analysts at Societe Generale said in a note.

** "These may put a floor under sentiment, but sustained upside requires stronger corporate profits, hence better domestic demand and reflation — still elusive without more forceful fiscal support."

** China's producer inflation accelerated to its fastest rate in nearly 4-1/2 years in October as higher global oil prices raised manufacturing costs, even as consumer inflation cooled amid weak domestic demand, data showed on Monday.

** China's goods exports are expected to have surged by a third in October, a Reuters poll showed, a helpful offset to weak domestic demand even as a year-to-date trade surplus of more than $1 trillion risks further antagonising trading partners.

** In Hong Kong, the benchmark Hang Seng index .HSI edged down 0.1%, while the city's tech shares .HSTECH lost 0.9%.

** In the region, Asian markets and US equity futures had an upbeat start, edging into positive territory after a wild week when tech-heavy markets in Asia suffered some of their steepest falls in years over AI.

** Separately, China said on Monday it would extend the suspension of its additional tariff of 24% on US imports and the suspension of special port fees on US-linked ships for two months.