China blue-chips end higher as profits at industrial firms grow

SHANGHAI: China's blue-chip index inched up on Monday, as industrial firms posted profit growth for a fourth straight month in August, pointing to a continued recovery in the world's second-largest economy from the coronavirus crisis.

The blue-chip CSI300 index rose 0.3%, to 4,581.91, while the Shanghai Composite Index slipped 0.1% to 3,217.53.

Profits at China's industrial firms grew, buoyed in part by a rebound in commodities' prices and equipment manufacturing, the statistics bureau said on Sunday.

China's recovery has been gaining momentum as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound.

Real estate firms led the gains, with the CSI300 real estate index closing 1.6% higher as worries over China Evergrande Group eased.

China Evergrande Group on Friday night gave an update on the IPO plans of its property management and electric vehicle units, indicating they could raise about $7 billion amid mounting fears of a liquidity crisis.

Investors also hunted for bargains following last week's sharp retreat.

"We will buy on the dip when there are corrections in sectors we favour," said Ma Manran, chairman of Beijing Ma Manran Asset Management Company.

Ma said he only liked leading companies in consumer, healthcare and emerging industries as China's economy is transitioning.

The CSI300 consumer staples index added 0.7%, while the CSI300 healthcare index shed 1.3%.

Bucking the broad strength, China's semiconductor stocks slid after the United States imposed restrictions on exports to China's biggest chip maker SMIC, citing a risk of military use.

Dual-listed SMIC, fell more than 4% in both Hong Kong and Shanghai.