At close of trade, the benchmark Shanghai Composite Index surged 1.18%, or 38.28 points, to 3,270.38. The Shenzhen Composite Index, which tracks stocks on China's second exchange, was up 1.54%, or 32.89 points, to 2,174.20. The blue-chip CSI300 index added 1.34%, or 54.72 points, to 4,130.86.
Fitch Ratings raised its China growth forecast for this year, citing evidence that consumption activity is recovering faster than initially expected after zero-Covid was abruptly abandoned. It now expects growth of 5% in 2023, compared with an earlier estimate of 4.1%. The recovery will be primarily consumption-led, it said, as households re-engage in activities previously hampered by health controls. Consumption contributed just 1 percentage point to growth last year, compared with a pre-pandemic average of around 4 percentage points, it said.
CURRENCY NEWS: China's yuan strengthened against the dollar on Thursday, despite softer mid-point fixing by China's central bank. Prior to market opening, the People's Bank of China (PBOC) set the yuan's midpoint rate CNY=PBOC at 6.7905 per dollar, 0.23% weaker than the previous fix of 6.7752. In the spot market, the onshore yuan CNY=CFXS was changing hands at 6.79044 at midday, 0.05% firmer than the previous late session close of 6.794.
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