China Stocks End Higher as Inflation Fears Ease


SHANGHAI, June 10 Reuters China stocks ended higher on Thursday, as regulators played down inflation worries and as SinoU.S. talks helped underpin sentiment.

The bluechip CSI300 index rose 0.7, to 5,271.47, while the Shanghai Composite Index gained 0.5to 3,610.86.

The techheavy startup board ChiNext rose 2.4, while Shanghais techfocused STAR50 index added 1.6.

Chinas central bank governor said inflation is basically under control, and monetary policy would be kept steady, in comments a day after concerns over inflationary pressures were fanned by data showing the fastest rise in factorygate prices in 12 years.

Analysts said the market would be stable as a whole as Beijing vowed policy stability.

Small and mediumcap sectors performed well, as market participants favour growth stocks due to relatively friendly liquidity conditions at home and continued loose liquidity abroad, Vanho Securities said in a report.

A strong yuan also helps bring more foreign inflows to the countrys equities market, the brokerage added.

Investors on Thursday purchased 9.5 billion yuan 1.49 billion worth of Ashares via the Stock Connect linking mainland and Hong Kong, according to Refinitiv data.

SinoU.S. talks also helped lift sentiment.

Top U.S. and Chinese commerce officials spoke by telephone and agreed to promote healthy trade and cooperate over differences, Chinas commerce ministry said on Thursday, the latest highlevel exchange as the countries spar over disagreements….


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