China stocks rise on hopes of more economic support; Hong Kong down

China stocks rose on Tuesday after state media quoted the country's premier as saying Beijing should step up efforts to stabilise key economic areas, while real estate shares rebounded after some banks were told to issue more loans for property projects.


Reuters | Shanghai | Updated: 23-11-2021 10:56 IST | Created: 23-11-2021 10:51 IST
China stocks rise on hopes of more economic support; Hong Kong down
Representative Image Image Credit: Pixabay
  • Country:
  • China

China stocks rose on Tuesday after state media quoted the country's premier as saying Beijing should step up efforts to stabilize key economic areas, while real estate shares rebounded after some banks were told to issue more loans for property projects. The CSI300 index rose 0.2% to 4,922.02 by the end of the morning session, while the Shanghai Composite Index gained 0.4% to 3,597.53.

The Hang Seng index dropped 1.0% to 24,698.49. The Hong Kong China Enterprises Index lost 0.9% to 8,848.98. ** China's economy faces new downward pressures but authorities should avoid rolling out economic measures in a "campaign-like and aggressive" way, state media on Monday quoted Premier Li Keqiang as saying.

** Li said China should step up efforts to stabilize six key areas and the government is studying policies on tax and fee cuts, along with some reform steps, to support businesses. ** Analysts said the wordings set the stage for more decisive monetary and credit easing.

** Real estate developers rebounded 1.5% from a 4% decline in the previous session, after reports that some Chinese banks had been told by financial regulators to issue more loans to property firms for project development. ** The move aimed to marginally ease liquidity strains across the industry, but authorities have yet to publicly give any signal that they will relax the "three red lines", and Nomura said it did not yet see a sharp shift in current property curbs.

** Energy and resource stocks added more than 1.2% each. ** Hong Kong shares dropped for a fifth straight session, weighed down by lingering worries over weak earnings from Hong Kong-listed Chinese tech firms.

** The Hang Seng Tech Index lost 1.3%, with Alibaba shedding more than 3% to trade near its record low after it slashed its forecast for annual revenue growth on increased competition and a regulatory crackdown. ** Food delivery giant Meituan extended losses and slumped 3% ahead of its third-quarter earnings results to be released this Friday.

** The healthcare sub-index dropped 2.2%.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback