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Felicia Tan
July 3 21:06

China's blue chip index at five-year peak in hopes of economic recovery

China's stock indices rose on Friday for the fourth consecutive session, while the blue chip index reached a five-year high in hopes of restoring the world's second largest economy after Beijing introduced additional stimulus measures.
The Shanghai Composite Index rose 2.01% to 3,152.81 points, while the CSI300 Blue Chip Index added 1.93% to 4,419.60 points.
The financial sub-index rose by 3.84%, the consumer goods sector by 0.09%, the real estate index by 0.63% and the health sector by 1.5%.
The index of ChiNext Composite startups increased by 1.57%.
The rise was led by CTS International Logistics Corp Ltd, Datong Coal Industry Co Ltd and Lushang Health Industry Development Co Ltd, which rose by 10.08%, 10.07% and 10.03% respectively.
The decline was led by MeiDu Energy Corp, Guangdong Songfa Ceramics Co Ltd and Shanghai Hongda Mining Co Ltd, which lost 11.11%, 10% and 7.39% respectively.
The Hong Kong Hang Seng Index rose 0.99% to 25,373.12 points, while the Hang Seng China Enterprises Index added 1.85% to 10,243.29 points.
The growth rate of business activity in China's service sector in June rose to its highest level in more than a decade amid a recovery in demand caused by the easing of restrictive measures imposed in the midst of the epidemic, showed a private study on Friday.
Market participants expect Beijing to take additional stimulus measures in the second half of the year, if necessary, after recent cuts by the People's Bank of China.