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China's blue-chip index firms on upbeat data, cenbank's liquidity boost

SHANGHAI, Dec 15 (Reuters) - China’s blue-chip index ended higher on Tuesday, boosted by upbeat factory data and a liquidity injection by the country’s central bank.

** The blue-chip CSI300 index rose 0.2% to 4,945.10, while the Shanghai Composite Index slipped 0.1% to 3,367.23.

** Leading the gains, the CSI300 healthcare index rose 2.6%.

** China’s factory output grew at its fastest pace in 20 months in November, as revived consumer spending and a gradual easing of COVID-19 restrictions in major trading partners lifted demand for the country’s manufactured goods.

** China’s central bank making its biggest-ever injection of medium-term funds to shore up liquidity, after recent corporate bond defaults shattered investor confidence and scuppered new issuances, also aided sentiment.

** The People’s Bank of China (PBOC) said it had issued 950 billion yuan ($145 billion) worth of one-year medium-term lending facility (MLF) loans to financial institutions to keep the “banking system liquidity reasonably ample”.

** “As China’s economy recovers and monetary policy tightens marginally, limited money could tend to favour sectors with solid fundamentals and reasonable valuations,” Dongxing Securities analysts said in a note.

** The Shanghai Stock Exchange and the Shenzhen Stock Exchange on Monday published proposals for simplifying the delisting process for public companies as China pushes forward with capital market reforms aimed at boosting investment.

** The more stringent delisting rules would help improve the quality of listed companies and thus bode well for the whole market, said Yan Kaiwen, an analyst with China Fortune Securities. (Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

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