SHANGHAI, Sept 28 (Reuters) - China’s blue-chip index inched up on Monday, as industrial firms posted profit growth for a fourth straight month in August, pointing to a continued recovery in the world’s second-largest economy from the coronavirus crisis.
** The blue-chip CSI300 index rose 0.3%, to 4,581.91, while the Shanghai Composite Index slipped 0.1% to 3,217.53.
** Profits at China’s industrial firms grew, buoyed in part by a rebound in commodities’ prices and equipment manufacturing, the statistics bureau said on Sunday.
** China’s recovery has been gaining momentum as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound.
** Real estate firms led the gains, with the CSI300 real estate index closing 1.6% higher as worries over China Evergrande Group eased.
** China Evergrande Group on Friday night gave an update on the IPO plans of its property management and electric vehicle units, indicating they could raise about $7 billion amid mounting fears of a liquidity crisis.
** Investors also hunted for bargains following last week’s sharp retreat.
** “We will buy on the dip when there are corrections in sectors we favour,” said Ma Manran, chairman of Beijing Ma Manran Asset Management Company.
** Ma said he only liked leading companies in consumer, healthcare and emerging industries as China’s economy is transitioning.
** The CSI300 consumer staples index added 0.7%, while the CSI300 healthcare index shed 1.3%.
** Bucking the broad strength, China’s semiconductor stocks slid after the United States imposed restrictions on exports to China’s biggest chip maker SMIC, citing a risk of military use.
** Dual-listed SMIC, fell more than 4% in both Hong Kong and Shanghai. (Reporting by Shanghai Newsroom)
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