China shares rise as weak economic data raises policy easing hopes

** The real estate sub-index soared 5.5% after Reuters on Tuesday reported some major Chinese banks stepped up lending toward the end of August and reduced a backlog in property loans. ** A private survey shows that China's August new home prices rose at their slowest pace in five months, and China has moved to cap the cost of renting a home in cities.

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 blue-chip CSI300 index rose 1.3% to end at 4,869.46, while the Shanghai Composite Index gained 0.7% to 3,567.10.

** China's factory activity expanded at a slower pace while the services sector slumped into contraction in August. ** The real estate sub-index soared 5.5% after Reuters on Tuesday reported some major Chinese banks stepped up lending toward the end of August and reduced a backlog in property loans.

** A private survey shows that China's August new home prices rose at their slowest pace in five months, and China has moved to cap the cost of renting a home in cities. ** The infrastructure sub-index surged 3.9%, its biggest daily jump 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 property sector. ** The consumer staples sub-index added 3%, the biggest daily gain since Aug. 10.

** The financials sub-index rose 3.2%. ** the resource sub-index plunged 4.2%, after China kicked off auctions for more industrial metals on Wednesday as Beijing aims to ease the pressure of high commodity prices on businesses.

** The new energy sub-index plummeted 5.6%, its biggest daily decline in one month.