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 controllable.
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 slower pace.
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.
Momo Inc. (MOMO) ended last trading session with a change of 2.43 percent. It trades at an average volume of 2.75M shares versus 6.98M shares recorded at the end of last trading session. The share price of $30.78 is at a distance of 246.62 percent from its 52-week low and down -10.39 percent versus its peak. The company has a market cap of $5.83B and currently has 189.55M shares outstanding. The share price is currently 13.79 percent versus its SMA20, 29.16 percent versus its SMA50, and 55.43 percent versus its SMA200. The stock has a weekly performance of 14.55 percent and is 67.46 percent year-to-date as of the recent close.
ZTO Express (Cayman) Inc. (ZTO) recently recorded -2.94 percent change and currently at $11.23 is -2.43 percent away from its 52-week low and down -39.13 percent versus its peak. It has a past 5-day performance of -13.75 percent and trades at an average volume of 2.3M shares. The stock has a 1-month performance of -10.73 percent and is -6.96 percent year-to-date as of the recent close. There were about 742.38M shares outstanding which made its market cap $8.34B. The share price is currently -15.42 percent versus its SMA20, -13.57 percent versus its SMA50, and -18.13 percent versus its SMA200.