China Stocks gain on stimulus hopes

The Mainland China share market closed higher on Wednesday, 23 March 2022, as investors were expecting stimulus measures, including possible cuts to banks' reserve requirements, after assurances of more support by the country's economic czar Vice Premier Liu He and other policymaking bodies last week.

However, market gains capped amid lingering concerns about surge in domestic COVID-19 infections. China has been urging its people to take vaccines and carrying out mass testing to contain an outbreak of Omicron cases in its wealthiest city Shanghai, which reported a sixth straight increase in daily asymptomatic coronavirus cases.

At close of trade, the benchmark Shanghai Composite Index was up 0.34%, or 11.17 points, to 3,271.03. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 0.54%, or 11.52 points, to 2,163.20. The blue-chip CSI300 index rose 20.5%, or 21.23 points, to 4,276.52.

Shares of hydrogen-related firms such as Hunan Hengguang Technology Co rose to their daily limit as the state planner unveiled production plans of hydrogen and hydrogen-fuelled vehicles by 2025.

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