Shanghai stocks post best day in a month, Fosun-linked shares slump
SHANGHAI Dec 14 (Reuters) - Shanghai stocks jumped more than 2 percent on Monday in their best session in a month, as stronger-than-expected November factory activity lifted sentiment without dashing hopes of fresh stimulus.
But stocks linked to Chinese conglomerate Fosun Group slumped, as investors had their first chance to react to news that Fosun's billionaire chairman was assisting authorities with an investigation.
Overcoming an early morning wobble, the Shanghai Composite Index ended the session 2.5 percent higher, at 3,520.67 points, posting its best performance since Nov. 4.
The blue-chip CSI300 index jumped 2.9 percent, to 3,711.32.
Investors were encouraged by signs of economic stabilisation after data released over the weekend showed China's factory output growth picked up to a five-month high, beating market expectations.
Nonetheless, not all held an optimistic view of the economy.
"We believe the faster growth in industrial production is transitory as the headwinds from industry overcapacity remain," Barclays said in a report on Monday. "We continue to look for more fiscal and monetary easing to support growth."
Stocks rose across the board, with industrial, infrastructure and real estate shares among the biggest gainers.
Resource shares also bounced sharply, even as seven companies in the sector were removed from the flagship CSI300 Index on Monday in a constituent adjustment that reflects changing investor preference.
Fosun-related shares, however, tumbled, even though Fosun Chairman Guo Guangchang made his first public appearance on Monday since reports he had gone missing last week.
Fosun Pharmaceutical lost 3.8 percent, Shanghai Yuyuan Tourist Mart Co shed 2.4 percent, while Shanghai Ganglian E-Commerce Holdings Co tumbled 6.4 percent. (Reporting by Samuel Shen and Pete Sweeney; Editing by Jacqueline Wong)
© Thomson Reuters 2017 All rights reserved.