Two sessions give boost to China's small caps

BEIJING - Chinese small-cap stocks were the biggest beneficiaries from the ongoing annual legislative meetings in Beijing.

The ChiNext gauge climbed by 1.8 percent at the mainland close of trading, led by automation companies including CSG Smart Science & Technology Co, after Premier Li Keqiang said the government would "actively develop" the measure.

The CSI 300 added 0.5 percent as Midea Group Co and Gree Electric Appliances Inc rose to lead makers of consumer discretionary goods higher.

Investors are gauging the outlook for the nation's industries amid the National People's Congress gathering.

Systemic risk is under control and economic fundamentals remain sound enough for the government to set a 2017 growth target of "around 6.5 percent, or higher if possible," Li said in his work report to the annual legislative gathering in Beijing.

Qian Qimin, a Shanghai-based analyst at Shenwan Hongyuan Group Co, said: "Premier Li's work report shows the government wants to accelerate the development of the technology sector and develop it into a major economic growth driver. Also, the ChiNext fell more than mainboard stocks last year and recovered less year-to-date, so there has been some bargain hunting."

The Shenzhen Composite Index climbed by 1.2 percent to its highest level since Dec 9, and the Shanghai Composite Index added 0.5 percent.

Bloomberg