* SSEC +1.21%, CSI300 +1.54%
* Follows >5% fall last week, biggest weekly drop in a year
* Factory activity growth slows in February
SHANGHAI, March 1 (Reuters) – China shares ended higher on
Monday, rebounding from their biggest weekly loss in a year as
investors bought shares bruised by the sell-off, even as slower
factory activity growth showed the fragility of China’s economic
recovery.
** The Shanghai Composite index ended up 1.21% at
3,551.40. It fell 5.06% last week, its biggest weekly percentage
drop since February 2020.
** The blue-chip CSI300 index was up 1.54%, with the
consumer staples sector up 1.49% and the healthcare
sub-index up 1.32%.
** Analysts at UBS said downside risks to the market are
“manageable” after last week’s fall.
** “We expect market volatility to intensify in the short term.
It could take investors some time to re-price domestic policy
normalisation, a global economic recovery and rising global
rates,” they said in a note.
** China’s factory activity expanded at the slowest pace in nine
months in February as weak overseas demand and coronavirus
flare-ups weighed on output, a business survey showed on Monday.
** Shares were supported by purchases from foreign investors.
Flows through the northbound leg of Stock Connect topped 6.5
billion yuan ($1.01 billion), according to Refinitiv data.
** Growth in new home prices in China eased slightly in February
as demand slowed over the Lunar New Year and some major cities
clamped down further on speculative buying.
** The real estate index rose 0.98%, with analysts
expecting home price growth to maintain a steady upward trend.
** The rare earth index jumped 6.64% after China’s
industry minister said on Monday that China’s rare earths are
underpriced due to vicious competition.
** The smaller Shenzhen index ended up 2.38% and the
start-up board ChiNext Composite index was higher by
2.767%.
** At 0708 GMT, the yuan was quoted at 6.464 per U.S.
dollar, 0.06% firmer than the previous close of 6.4681.
($1 = 6.4643 Chinese yuan)
(Reporting by Andrew Galbraith; editing by Uttaresh.V)
