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China's shares rebound on higher auto and chemical stocks

China's shares rebound on higher auto and chemical stocks

China's rose Wednesday, rebounding from a one-day drop as shares in automakers and chemical companies climbed on expectations of strong earnings.
The benchmark Shanghai Composite Index ended up 0.6 percent at 5,233.35 points. The Shenzhen Composite Index for China's smaller second market rose 1.7 percent to 1,433.06.
Automaker Beiqi Foton Motor rose 3 percent, while Hunan Changfeng Motor ended up 3.4 percent. Chemical maker Shandong Haihua rose 3.4 percent and Dymatic Chemicals jumped 5.2 percent.
Shares in banks and real estate developers fell on concern about possible government steps to tighten access to credit. Such worries dragged down the Shanindex by 0.6 percent on Tuesday.
"Investors are wary of buying into bank and property developers out of concerns over upcoming macroeconomic measures, and accelerating rotational buying is taking place in sectors with a positive 2008 outlook like chemicals, cars, pharmaceuticals and military machines," said Everbright Securities analyst Shi Honglin.
Industrial & Commercial Bank of China, the country's biggest commercial lender, dropped 1.6 percent while Hua Xia Bank fell 2.1 percent.


Updated : 2021-05-09 07:21 GMT+08:00