Also boosting sentiments was China's central bank statement that it will step up financing support to spur domestic consumption and key investment projects and support a stable real estate market.
At close of trade, the benchmark Shanghai Composite Index advanced 1.01%, or 31.70 points, to 3,155.22. The Shenzhen Composite Index, which tracks stocks on China's second exchange, added 1.59%, or 31.79 points, to 2,037.14. The blue-chip CSI300 index was up 1.94%, or 75.63 points, to 3,968.58.
China's state planner has allowed three central government-backed utilities and its top steelmaker to resume coal imports from Australia, the first such move since Beijing imposed an unofficial ban on coal trade with Canberra in 2020.
ECONOMIC NEWS: China Caixin Services PMI Rises To 48 In December The seasonally adjusted headline Business Activity Index rose from a six-month low of 46.7 in November to 48.0 in December. While the sub 50.0 index reading indicated a fall in Chinese service sector activity for the fourth straight month, the rate of decline was only modest overall. Lower output was often linked to the impact of COVID-19 containment measures on operations, including temporary business closures, and customer demand. However, some companies indicated a relative improvement in conditions compared to November.
Latest PMI data signalled a further fall in business activity across China's service sector at the end of 2022, as ongoing efforts to curb the spread of COVID-19 continued to disrupt operations and dampen demand. That said, both activity and new work fell at softer rates than in November. The level of outstanding business meanwhile expanded at the quickest pace since May, and firms registered a softer fall in employment. Inflationary pressures moderated further, with both input costs and prices charged rising at mild rates.
The seasonally adjusted Composite Output Index picked up from 47.0 in November to 48.3 in December, to point to a reduction in overall Chinese business activity for the fourth straight month. The rate of decline eased to a modest pace, however, with softer falls in output seen across both the manufacturing and service sectors.
CURRENCY NEWS: The Chinese currency was up against the U.S. dollar on Thursday, as China's central bank set a firmer midpoint rate. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at a fresh four-month high of 6.8926 per dollar, 205 pips or 0.3% firmer than the previous fix of 6.9131. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.8862 at midday, 104 pips firmer than the previous late session close. It was not far from a more than four-month high of 6.8733 hit on Tuesday.
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