SHANGHAI, Nov 6 (Reuters) - China’s blue-chip index recouped earlier losses to end flat on Friday, posting its best week in three months, as growing prospects of a Joe Biden presidency in the United States raised hopes of decreased tensions between Washington and Beijing.
** The blue-chip CSI300 index was unchanged at 4,885.72 on Friday, while the Shanghai Composite Index slipped 0.2% to 3,312.16.
** For the week, the CSI300 index gained 4.1%, its best weekly rise since July 31, while the SSEC was up 2.7%.
** While analysts expect little change in U.S. policy towards China whatever the outcome, a Biden administration is expected to bring a more nuanced, multilateral approach to trade.
** With his re-election chances fading as more votes are counted in a handful of battleground states, U.S. President Donald Trump launched an extraordinary assault on the country’s democratic process from the White House on Thursday, falsely claiming the election was being “stolen” from him.
** “No matter who wins the election, the big trend of U.S. containment against China will not be changed,” said Zheng Zichun, an analyst with AVIC Securities.
** “Though Biden, if elected, could put more moderate restrictions (than Trump) on China’s tech sector, including its 5G industry, which could help the sector and the wider market for the short-term,” Zheng added.
** Investors also found support this week from a survey showing strong factory activity in China.
** Market participants expect more policy support as Beijing looks to set its next five-year plan.
** China’s policymakers are close to setting an average annual economic growth target of around 5% for the next five years, at the lower end of ranges previously considered, as global risks cloud the outlook, policy sources said. (Reporting by Shanghai Newsroom; Editing by Krishna Chandra Eluri)
Our Standards: The Thomson Reuters Trust Principles.