China’s blue-chip, start-up indexes hit over five-year high on growth hopes

China's blue-chip, start-up indexes hit over five-year high on growth hopes

China’s blue-chip index and start-up board ChiNext both hit their highest in more than five years on Wednesday, as Asian stocks hit a record on hopes of a strong economic recovery next year.

The blue-chip CSI300 index rose 1.4% to 5,113.71 points, its highest close since June, 2015. The Shanghai Composite Index advanced 1.1% to 3,414.45 points.

Shenzhen’s start-up board jumped over 3%, as investors bet on green technologies.

Investors shrugged off the move by U.S. President Donald Trump‘s administration to strengthen an executive order barring U.S. investment in Chinese firms with alleged military backing.

Global index publisher FTSE Russell said it may delete more Chinese companies from its global benchmarks in response.

Most sectors climbed, with energy and resources gaining the most. Investors are anticipating a robust economic recovery as several nations seek to contain the coronavirus spread with vaccines.

Environmental protection shares also jumped. Beijing has vowed to reduce carbon emissions to meet the government’s green pledge.

Shares in battery giant Contemporary Amperex Technology Co Ltd jumped 10.4% to record closing high on its production expansion plans.

Some internet firms, which witnessed panic-selling earlier this week due to Beijing’s anti-trust probe into Alibaba Group , and its affiliate Ant Group, rebounded sharply on Wednesday.

Hundsun tech, partly owned by Alibaba, jumped 7.5%.

Ant Group Co Ltd is considering folding most of its online financial businesses, including consumer lending, into a holding company that would be regulated like traditional financial firms, two people with direct knowledge of the matter said.

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