China, Hong Kong stocks rise on policy hopes; property shares rebound

** Shimao's Hong Kong-listed shares slumped 7% in morning trading to the lowest level since early-2009. ** The Hang Seng Tech Index rebounded from record lows hit in the previous session.


Reuters | Shanghai | Updated: 07-01-2022 10:00 IST | Created: 07-01-2022 09:59 IST
China, Hong Kong stocks rise on policy hopes; property shares rebound
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China and Hong Kong stocks tracked other Asian shares higher on Friday as Beijing reiterated the need to prioritize economic stability, while property shares rebounded sharply on fresh signs of policy easing. China's blue-chip CSI300 index rose 0.4% to 4,835.47 at the end of the morning session, while the Shanghai Composite Index gained 0.4% to 3,598.62.

** The Hang Seng index added 1.2% to 23,337.96. The Hong Kong China Enterprises Index gained 1.3% to 8,172.02. ** The policy research office of the National Development and Reform Commission (NDRC) said in the official People's Daily on Friday that China should pay more attention to stabilizing growth. The state planner also said the country has relatively big room for policy adjustments.

** Property shares rebounded in both markets after media reports that Chinese policymakers plan to exclude debt accrued from acquiring distressed assets when calculating property developers' compliance with the "three red lines". ** The CSI300 Real Estate Index jumped more than 5%. Chinese property companies listed in Hong Kong rose nearly 3%.

** However, shares of Shimao Group Holdings slumped and trading of some its key unit's bonds was paused after the Chinese developer defaulted on a trust loan payment, underscoring continued stress in the country's property sector. ** Shimao's Hong Kong-listed shares slumped 7% in morning trading to the lowest level since early-2009.

** The Hang Seng Tech Index rebounded from record lows hit in the previous session. ** Chinese tech shares had fallen this week, amid global weakness in the tech sector on fears of U.S. quantitative tightening.

** A key market driver this week has been the rise in U.S. yields following the publishing of the Federal Reserve's December minutes, said Kerry Craig global market strategist at JPMorgan Asset Management.

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

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