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China stocks end higher, tourism shares tumble as coronavirus spreads

China is confident of maintaining steady industrial growth this year despite big pressures facing the sector.

Reuters|
Last Updated: Jan 20, 2020, 02.36 PM IST
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China stocks
The blue-chip CSI300 index ended 0.8 per cent higher at 4,185.83, while the Shanghai Composite Index closed up 0.7 per cent at 3,095.79.
SHANGHAI:China stocks closed higher on Monday following signs that the economy may be stabilizing, and as hopes rose for more stimulus measures to aid growth.

The blue-chip CSI300 index ended 0.8 per cent higher at 4,185.83, while the Shanghai Composite Index closed up 0.7 per cent at 3,095.79.

China is confident of maintaining steady industrial growth this year despite big pressures facing the sector, Minister of Industry and Information Technology Miao Wei said.

His remarks came after China's industrial output topped expectations in December by growing 6.9 per cent from a year earlier, the strongest pace in nine months. Investors also expect more government stimulus ahead after China's economic growth cooled to a near 30-year low of 6.1 per cent in 2019 amid a bruising trade war with the United States.

Among shares, hotel operators and tourist firms slumped following news that an outbreak of a new coronavirus in China was spreading to other cities, raising concerns around its containment and clouding travel plans of millions of Chinese for Lunar New Year holidays.

BTG Hotels Group Co and Shanghai Jin Jiang International Hotels Development Co tumbled over 6 per cent, while tourism company Songcheng Performance Development Co slumped 9 per cent. Shares of drugmakers and facial mask producers such as Jiangsu Sihuan Bioengineering Co and Shandong Lukang Pharmaceutical Co jumped.

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