China shares close higher on consumer, agriculture stock boost

Reuters2021-10-19

SHANGHAI, Oct 19 (Reuters) - China stocks closed higher on Tuesday, led by consumer staples and agriculture stocks, as the country’s market regulator eyed better support for private firms after weak economic data.

The blue-chip CSI300 index rose 1% to 4,922.72, while the Shanghai Composite Index gained 0.7% to 3,593.15.

China’s market regulator said it will take steps to boost support for private firms and promote fair competition by strengthening supervision.

This comes after data on Monday showed economic growth in China hit a one-year low, while analysts expected more targeted easing measures to come in the coming months.

Consumer staples added 2.8%, rebounding from a sharp drop in the previous session.

Broker CICC said in a note that consumption was expected to continue to recover in the fourth quarter.

Analysts said investors would now eye third-quarter corporate earning reports.

The agriculture sub-index finished up more than 3%, with pig-breeding companies surging the most.

A sub-index tracking healthcare shares was up 1.8%.

Bucking the trend, real estate firms lost 1% as investors digest Beijing’s property tax plans and growing signs of weakness in China’s housing market.

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