China stocks rise for 4th straight day, but gains curbed

Updated - January 27, 2018 at 12:54 PM.

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China stocks rose for the fourth straight day on Wednesday, although optimism over improving corporate earnings was offset by a surprise increase in rates on medium-term loans.

Trading volume in Shanghai shrank to the lowest in four months, as many traders had already left for the week-long Lunar New Year holiday that starts on Friday.

The blue-chip CSI300 index rose 0.3 per cent to 3,375.90, while the Shanghai Composite Index gained 0.2 per cent to 3,149.55 points.

Xiao Shijun, analyst at Guodu Securities in Beijing, said that the market was closely monitoring US President Donald Trump's policies, which could set the tone on trade ties between the world's two largest economies and consequently affect the stock market.

Sentiment was also curbed by tightening concerns, after China's central bank raised interest rates on its medium-term lending facility (MLF) on Tuesday, a move seen to be in line with its broader objective of deleveraging.

Most sectors gained ground.

An index tracking infrastructure stocks advanced around 0.8 per cent, as the shares of heavyweight China State Construction Engineering Corp Ltd rose 2.2 per cent.

Shares of Aluminium Corp of China Ltd , the nation's top aluminium producer, jumped 3.3 per cent, after reports of possible capacity cuts.

Published on January 25, 2017 08:10