China shares settle higher, led by EV, healthcare stocks

SHANGHAI: China shares closed higher on Wednesday, led by electric vehicle and healthcare stocks on the back of strong earnings, while investors waited for a likely politburo meeting later this week. At the close, the Shanghai Composite index was up 0.42% at 3,457.07, while the blue-chip CSI300 index was up 0.56%.

Leading the gains, the new energy vehicle sector sub-index gained 2.58%, while the healthcare sub-index added 2.11%. The consumer staples sector was down 0.03%, while the real estate index edged lower 0.14%.

The smaller Shenzhen index ended up 0.8% and the start-up board ChiNext Composite index was higher by 2.162%. The tech-focused STAR 50 index rose 0.94%.

Shares in Contemporary Amperex Technology Co Ltd, the world’s biggest battery maker for new energy vehicles, climbed 5.3% after reporting a 22% jump in its 2020 net profit.

Investors are expecting a meeting of the politburo, the top decision-making body of China’s ruling Communist Party, to happen sometime later this week.

China is set to report its first population decline since 1949, the Financial Times reported on Tuesday, complicating the challenges faced by policymakers to ensure the country’s long-term economic growth.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.1%, while Japan’s Nikkei index closed up 0.21%. At 07:04 GMT, the yuan was quoted at 6.4869 per U.S. dollar, 0.06% weaker than the previous close of 6.483.