China stocks gain as policy easing expectations rise; Hong Kong up
** China's factory activity expanded at a slower pace while the services sector slumped into contraction in August. ** The real estate sub-index soared 5.7% after Reuters on Tuesday reported some major Chinese banks stepped up lending toward the end of August and reduced a backlog in property loans.
Chinese shares rose on Wednesday after factory activity data raised hopes of an easing in policy, with consumer staples, real estate, financials and infrastructure sectors leading the gains. 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.
China's factory activity expanded at a slower pace while the services sector slumped into contraction in August.
The real estate sub-index soared 5.7% after Reuters on Tuesday reported some major Chinese banks stepped up lending toward the end of August and reduced a backlog in property loans.
The infrastructure sub-index surged 4.6%, the biggest daily gain since July 2020.
Chinese economist Ren Zeping suggested that the government should introduce counter-cyclical measures, including fiscal stimulus to boost infrastructure investment and structural easing of monetary policy to avoid hard lending of the property sector.
The consumer staples sub-index added 3.5%, the biggest daily gain since Aug 10. The financials sub-index rose 3.7%.
The new energy vehicle sub-index and the resource sub-index declined 3.5% and 3.7%, respectively.
In Hong Kong, stocks rose as the city's retail sales climbed for the sixth straight month in July.
WuXi Biologics dropped 3.2%, the second-biggest decliner on the Hang Seng Index, dragging the benchmark down 27 points.
China stepped up its reform of healthcare service pricing at public medical institutions on Tuesday with the announcement of a pilot programme aimed at controlling costs for consumers.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)