SHANGHAI: China’s main stock indexes rose on Friday and produced their biggest weekly gains in more than two months, led by infrastructure and material shares, as the country pledged to push its “One Belt, One Road” initiative. The blue-chip CSI300 index rose 0.5 per cent, to 3,413.49 points, while the Shanghai Composite Index added 0.4 per cent to 3,196.70 points. For the week, the CSI was up 1.5 per cent, while the SSEC gained 1.8 per cent. Both notched up their best gains since the week ended Nov. 25. Market reaction to China’s better-than-expected January trade data in January was largely muted.
News that US President Donald Trump and China’s President Xi Jinping had a cordial telephone conversation, in which Trump affirmed the one-China policy on Taiwan, also appeared not to move the mainland’s markets. Most sectors gained ground, led by infrastructure and energy plays. China’s Ministry of Commerce said the “One Belt One Road” initiative held “significant meaning” despite slow cost recovery and it would benefit neighbouring countries. Also, China pledged to invest over $146 billion on transport in the country’s mid-west this year. Small-cap stocks took a breather as investors took profits. However, the tech-heavy start-up index ChinNex rose 1.5 per cent in its best week since mid-October.
