SHANGHAI, Aug 1 (Reuters) – China stocks rose on Monday, after the country’s securities regulator chief said the agency will make stable capital market operations a top priority, while carmakers surged on hopes of rising demand for new energy vehicles.
The CSI300 index rose 0.6% to 4,193.50 at the end of the morning session, while the Shanghai Composite Index gained 0.2% to 3,258.46.
The Hang Seng index dropped 0.3% to 20,091.11. The Hong Kong China Enterprises Index lost 0.1% to 6,880.10.
** “We must always adhere to the bottom-line mentality and resolutely prevent ‘market failure’ from causing abnormal fluctuations,” Yi Huiman, chairman of China Securities Regulatory Commission said.
** A private survey showed China’s factories lapsed into slower growth in July, following a bearish official survey on Sunday.
** China reported 393 new coronavirus cases for Sunday, down from the daily caseload of around 1,000 last week.
** Stocks in consumer staples, energy and new energy rose between 1% and 1.8%.
** China will use effective investment to help the economy recover and will not resort to flood-like stimulus, state media said on Friday.
** To spur consumption, China will extend an exemption on purchase tax on “new energy” vehicles (NEV), following a cut to the car purchase tax, pushing automobiles and NEVs jumping more than 3% each.
** Real estate developers lost 2.6% and mainland developers traded in Hong Kong declined 2.5% to a record low, after a private survey showed July new home prices and sales volume both fell from a month earlier.
** Alibaba Group dropped 2.2% in Hong Kong, after it became one of the lasted firms facing delisting risks from the United States.
** Investors cautiously monitored geopolitical developments as U.S. House of Representatives Speaker Nancy Pelosi starts a tour of four Asian countries on Sunday, her office said, without mentioning Taiwan amid intense speculation she might visit the self-ruled island claimed by China.
Reporting by Shanghai Newsroom; Editing by Rashmi Aich