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SHANGHAI, Nov 9 (Reuters) - China’s blue-chip index ended at a more than five-year high, as Joe Biden’s victory in the U.S. presidential election raised hopes of a thaw in the frosty Sino-American trade relations.
The blue-chip CSI300 index rose 2.0% to 4,981.35 points, its highest closing level since June 17, 2015, while the Shanghai Composite Index added 1.9% to 3,373.73.
The tech-heavy start-up board ChiNext and the STAR50 both advanced 3%.
U.S. President-elect Biden will convene a coronavirus task force on Monday to examine the No. 1 problem confronting him when he takes office in January, while President Donald Trump pursues several long-shot gambits to hold onto his job.
Analysts and traders said the win would help the A-share market, at least for the short term, on hopes of improved Sino-U.S. trade ties, though the U.S. containment strategy is unlikely to change much.
The Biden victory is good for China stocks as it erases uncertainty, said Li Huiyong, vice general manager of Hwabao WP Fund Management Co.
China’s technology industry, one of Trump’s main targets in Washington’s tussles with Beijing, hopes Biden can create a more constructive relationship - but few think the rivalry will deescalate, executives and analysts say.
Over the long run, the U.S. strategy of uniting other Western countries to contain China’s global strategic expansion is unlikely to change much, said Niu Chunbao, chairman at Wanji Asset, a Shanghai-based private securities fund.
Chinese state media struck an optimistic tone about Biden’s win on Monday, saying relations could be restored to a state of greater predictability, starting with trade.
Aiding sentiment, Chinese trade data showed the country’s exports grew at the fastest pace in 19 months in October. ($1 = 6.5761 Chinese yuan renminbi) (Reporting by Luoyan Liu, Samuel Shen and Andrew Galbraith. Editing by Gerry Doyle)