CHINA’S stocks rebounded strongly yesterday, led by small-caps, as investors shrugged off Britain’s decision to leave the European Union.

    The Chinese market had a small fall Friday after Brexit, but main indexes climbed steadily after a weak opening yesterday.

    The blue-chip CSI300 index rose 1.4 percent to 3,120.54, while the Shanghai Composite Index gained 1.5 percent to 2,895.70 points.

    “Brexit’s direct impact to China is limited, as China’s capital market is not fully open yet,” said Wu Kan, head of equity trading at Shanghai-based investment firm Shanshan Finance.

    He added that the longer term impact on China needed further assessment.

    But some analysts quickly quantified Brexit’s impact on China’s economy.

    Nomura lowered its China gross domestic product growth forecast for 2016 from 6.2 percent to 6 percent, predicting Brexit would hurt exports to Europe, and hit sentiment in some areas of economic activity.

    Hong Hao, chief strategist of BOCOM International, said that a loss of direct financial holdings, further deterioration in current and capital accounts due to capital flight and weakened bilateral trade, are three possible channels of contagion from Brexit for China.

    All main sectors rose, with Shenzhen’s start-up board ChiNext up 3.1 percent and consumer shares also rising more than 3 percent.

    China has ample fiscal space to cope with any market turbulence triggered by Brexit, according to Jin Liqun, president of Asian Infrastructure Investment Bank, the new China-backed development bank.

    Policymakers should ensure sufficient liquidity to help manage the fallout from Brexit while avoiding a buildup of inflationary pressures, Jin said. (SD-Agencies)