SHANGHAI, March 13 China stocks posted their
best gains in three weeks on Monday after a senior research
official said over the weekend that the world's second-largest
economy was on steadier footing.
The blue-chip CSI300 index rose 0.9 percent to
3,458.10 points, while the Shanghai Composite Index
gained 0.8 percent to 3,237.02.
Li Wei, director of the Development Research Centre of the
State Council, said on Sunday that the risk of a sharp slide in
China's economy has decreased.
He said the economy had moved through an "L-shaped" pattern
of slowing to now "horizontal" growth.
Fears of more forceful monetary tightening in China also
abated after a senior government official said on Sunday that
the debt risk for China's main state-owned enterprises (SOEs) is
On Friday, China's central bank governor Zhou Xiaochuan said
that it would take time to bring down corporate debt levels.
The central bank has gently lifted short-term interest rates
twice this year and is expected to bump them up again in coming
months as a more stable economy gives policymakers the
confidence and room to tackle financial risks such as high
corporate leverage ratios.
Data on Tuesday is expected to show China's industrial
output and investment growth picked up in the first two months
of the year, though retail sales may have expanded at a slightly
Traders said China's markets have largely priced in a U.S.
rate rise expected later this week.
Sealand Securities said in its latest strategy report that
although another U.S. rate hike would have short-term impact on
the yuan and domestic liquidity, the "marginal" impact was
becoming smaller and smaller, limiting the risk of a further
slide in stocks.
Sectors rallied across the board, led by real estate
and material shares, which rose on
expectations that prices of raw materials will rise further on
the back of a recovery in the global economy.
(Reporting by Luoyan Liu and John Ruwitch; Editing by Kim