- Shanghai stocks bounced back after days output for two consecutive days, with gains of 2.49% and 4.37%.
- The Asian stock market was mixed on Wednesday after mainland China’s stocks rebounded after losing ground over the past few days.
The Shanghai Composite rose 2.49% to 2958.28, while the Shenzhen Component was 4.372% to 10652.90. Shares of the mainland’s largest companies were up 2.94% to 3895.54 on the CSI 300 index.
The Hang Seng Index rose 0.2% in Hong Kong’s last hour of trading.
According to official data released Wednesday, Chinese industrial profit grew by 8.5% year-on-year between January and March.
“I am very impressed with how industrial production and profits have held up in China so far, and I believe that the impact of Covid will not be as severe as some analysts think” – David Chao, Global Strategist for Markets for the Asia-Pacific region.
According to Chao, the government will do everything to support growth and stabilize the economy. “Industrial production is one way to make sure this happens.”
Asian stocks had a heavy loss this week as investors remain concerned about Covid in the Mainland. Recent testing began on mass Covid cases in Beijing and Shanghai after reports of an outbreak over the weekend. This is because much of Shanghai is on long-term quarantine due to the recent spike in Covids, which caused concern within China’s borders.
Ray Attrill, head of foreign exchange strategy at the National Bank of Australia, wrote that there is a palpable fear that Beijing will be isolated like Shanghai.