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Staff of Reuters 3 Minute Read* The daily quota for HK->Shanghai Connect was used -3.8 percent, and the daily quota for Shanghai->HK was utilized 2.8 percent. The FTSE China A50 is down 1.5%. (Reuters) – BEIJING, July 16 – China’s stock market rose for the week, as investors cheered the central bank’s surprising decision to reduce the amount of cash banks must maintain as reserves to support the country’s post-COVID economic recovery. * * On Friday, the Shanghai Composite index fell 0.71 percent to 3,539.30, while the blue-chip CSI300 index fell 1.1 percent, extending losses since lunchtime. * * The CSI300 rose 0.5 percent this week, while the SSEC rose 0.43 percent. * * For the day, the consumer staples sector was down 1.86 percent, the material index was down 1.81 percent, and the information and technology sub-index was down 0.22 percent. * * Last Friday, China’s central banks surprised the market by lowering the reserve requirement ratio (RRR), freeing about 1 trillion yuan in long-term liquidity and raising hopes for more policy support this week. * Better-than-expected June activity figures, including retail and industrial output, boosted investor confidence, owing to a resurgence in developed market demand and a gradual recovery among Southeast Asian exporters. * “China’s economy has fully recovered, and the immunization process is moving forward quickly,” said Jian Shi Cortesi, GAM Investments’ Investment Director of Asian Equities. ** Brokerages recommended sectors with long-term growth potential, as well as investment themes such as clean energy and self-sufficiency in key technologies such as semiconductors, software, and the Internet of Things, as well as investment themes such as clean energy and self-sufficiency in key technologies such as semiconductors, software, and the Internet of Things. ** Renewable energy stocks soared on Friday after China launched its long-awaited national carbon emission trading plan, with nitrogenous fertilizer maker Yunnan Yuntianhua Co surging by a daily limit of 10%. ** “However, if uncertainty regarding (China’s) monetary policy and sector regulation persists, stock valuations are expected to be pressured,” said J.P. Morgan Asset Management’s Global Market Strategist Zhu Chaoping. ** The smaller Shenzhen index fell 0.96 percent, while the ChiNext Composite index for start-ups fell 2.961 percent. ** MSCI’s Asia ex-Japan stock index fell 0.37 percent in the region, while Japan’s Nikkei index fell 0.98 percent. Cheng Leng and Andrew Galbraith contributed reporting, and Sherry Jacob-Phillips edited the piece./nRead More

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