Chinese equities gain as expectations for policy easing rise; Hong Kong on the rise
Chinese stocks rose on Wednesday after data on factory activity raised hopes of policy easing, with the consumer staples, real estate, finance and infrastructure sectors under pressure. head of earnings. The CSI300 index rose 1.8% to 4,890.14 at the end of the morning session, while the Shanghai Composite Index gained 0.9% to 3,574.56.
The Hang Seng Index rose 0.6% to 26,038.35. The Hong Kong China Enterprises index gained 1.4% to 9,313.05.
Chinese factory activity grew at a slower pace as the service sector collapsed into contraction in August.
The real estate sub-index climbed 5.7% after Reuters reported on Tuesday that some major Chinese banks stepped up lending towards the end of August and reduced a mortgage backlog.
The infrastructure sub-index jumped 4.6%, the biggest daily gain since July 2020.
Chinese economist Ren Zeping suggested the government should introduce countercyclical measures, including fiscal stimulus to boost infrastructure investment and structural easing of monetary policy to avoid hard lending by the real estate sector.
The consumer staples sub-index rose 3.5%, the biggest daily gain since August 10. The financial services sub-index rose 3.7%.
The new energy vehicles sub-index and the resources sub-index fell 3.5% and 3.7% respectively.
In Hong Kong, shares rose as the city’s retail sales climbed for the sixth consecutive month in July.
Tech companies led the gains, with the Hang Seng tech index rising 1.8%. Index constituents Meituan, Tencent Holdings and Alibaba Group rose 2.5%, 2% and 0.7% respectively.
WuXi Biologics fell 3.2%, the second largest drop in the Hang Seng index, pushing the benchmark down 27 points.
China on Tuesday stepped up its reform of the pricing of health services in public medical facilities with the announcement of a pilot program to control costs for consumers.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)