China’s blue-chip index ends at 13-year high, thanks to gains in banking and healthcare stocks

* SSEC + 0.6%, CSI300 + 0.9%

* Banking and healthcare stocks lead gains

* The service sector in China is growing at a slower pace

SHANGHAI, Jan.6 (Reuters) – China’s blue chip index closed Wednesday at its highest level in nearly 13 years after rising for five consecutive sessions, as investors expect the government maintains its political support to counter the lingering impact of COVID-19 on the economy. ** At the close, the blue chip CSI300 was up 0.92% to 5,417.68, its highest since January 16, 2008, while the Shanghai Composite Index was up 0. 63% at 3,550.88.

** Leading the advance, the banking sector sub-index rose 2.38% and the health sub-index rose 1.82%. The financial sector sub-index and the consumer staples sector rose 1.63% and 1.25% respectively.

** Due to weak overseas demand and increasing pressure from the coronavirus outbreak both at home and abroad, monetary conditions will remain flexible, wrote Li Hao, analyst at Sealand Securities , in a note.

** Chinese authorities on Wednesday closed sections of freeways crossing Hebei province that surrounds Beijing and closed a key long-distance bus terminal in the provincial capital Shijiazhuang in an attempt to stave off another wave of coronavirus. ** The province, which entered ‘war mode’ on Tuesday, accounted for 20 of the 23 new locally transmitted COVID-19 cases reported in mainland China on Jan.5, more than the province’s total of 19 across the three previous days.

** China’s service sector activity grew at a slower pace in December, a private sector survey showed on Wednesday, as sporadic coronavirus outbreaks dampened the recovery in consumer confidence and weighed on the market. growth of new businesses.

** The smaller Shenzhen index ended down 0.07% and the startup board ChiNext Composite index rose 0.552%. ** In the region, the MSCI Asia ex-Japan stock index was firmer by 1.41%, while the Japanese Nikkei index closed down 0.38%. ** As of 07:13 GMT, the yuan was trading at 6.4562 to the US dollar, 0.02% lower than the previous close of 6.455. (Reporting by Shanghai Newsroom; editing by Shailesh Kuber)