SHANGHAI, Dec 21 (Reuters) – Chinese stocks rose on Thursday, rebounding from a nearly five-year low in the previous session, but Hong Kong shares showed signs that Wall Street’s long winning streak had ended. As a result, global markets followed suit.
** The blue-chip CSI 300 index rose 0.5%, but remained near its lowest level since February 2019. The Shanghai Composite Index rose 0.2%.
** Hong Kong’s Hang Seng Index and Hang Seng China Enterprise Stock Index both fell 0.2%.
** Asian stocks fell as Wall Street’s long winning streak ended, but US bond yields fell to a five-month low on expectations that Britain’s noticeably weaker inflation readings would be reflected in upcoming US price data. It was close to the level.
** Stocks of new energy, artificial intelligence, and tourism companies led the rise, each rising more than 1%.
** Foreign investors have been net buyers of Chinese stocks so far on the day after two rounds of selling.
** “The market is near the bottom and there isn’t much room for further decline,” said an anonymous securities analyst. “However, investor sentiment remains weak as concerns about economic recovery and policy stimulus persist.”
** In Hong Kong, tech giants fell 0.8%. Meanwhile, Alibaba and Meituan rose 0.4% and 1.5%, respectively.
**Sinolink Securities analyst Zhang Chi said, “If monetary policy becomes accommodative early next year, we can expect a significant rebound.” “The sustainability of the rebound will depend primarily on economic recovery and liquidity conditions.”
(Reporting by Shanghai Newsroom; Editing by Subranche Sahu)
