Chinese stocks gain in auto stimulus, data offset COVID fears
SHANGHAI, July 7 (Reuters) – Chinese stocks ended higher on Thursday as automakers surged on new measures rolled out to boost car sales, while data showing foreign inflows also eased concerns over outbreaks of COVID-19.
** The bluechip CSI300 index gained 0.4%, while the Shanghai Composite index rose 0.3%.
** A carmaker tracking index jumped 4.7% after the government announced it would consider extending a tax break for electric vehicles and outline plans to build more charging stations and encourage lower charging costs.
** New energy vehicle stocks jumped, with electric car maker BYD gaining 4%.
** Market sentiment was also bolstered by data from the Institute of International Finance (IIF) showing $9.1 billion in foreign inflows into the Chinese stock market in June, bucking the trend of other emerging markets.
** “For the coming months, several factors will influence the dynamics of flows, among which the timing of the peak of inflation and the outlook for the Chinese economy will be the main concerns,” the IIF report said.
** The influx data helped ease concerns about further outbreaks of COVID-19 in China, which reported 409 new coronavirus cases for July 6, including symptomatic and asymptomatic cases.
** Millions of people in Shanghai lined up for a third day of mass COVID-19 testing on Thursday as authorities in several Chinese cities raced to stamp out new outbreaks.
** Energy and Resources shares rose, but Banking and Real Estate shares fell.
(Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips)