China stocks rise on boost from property and new energy shares
** China's central bank cut key lending rates in a surprise move on Monday as data showed Chinese economic activities and credit expansion slowed sharply in July. ** Analysts now expect banks to cut the Loan Prime Rate next week.
China shares edged higher on Tuesday, led by gains in property and new energy stocks on policy support, even as worries over COVID flare-ups and slowing economic activities lingered. The CSI300 index had risen 0.1% by the end of the morning session, while the Shanghai Composite Index was up 0.2%.
The Hang Seng index added 0.1%. The Hong Kong China Enterprises Index gained 0.3%. ** China's central bank cut key lending rates in a surprise move on Monday as data showed Chinese economic activities and credit expansion slowed sharply in July.
** Real estate developers listed in the mainland rose 1.5%, while mainland developers traded in Hong Kong jumped nearly 7%. ** Chinese regulators have instructed state-owned China Bond Insurance Co Ltd to provide guarantees for onshore bond issuance by a few private property developers including Longfor Group and CIFI Holdings, sources said.
** Longfor, CIFI and top developer Country Garden soared between 9% and 14% in Hong Kong. ** In the mainland market, new energy shares added 1.5%, with photovoltaic stocks up 2.5%.
** Analysts say lower lending costs would potentially prolong the rally in growth stocks like new energy shares. ** China's COVID-19 situation has been worsening over the past week, with the daily local caseload surging to more than 2,000, Nomura said in a note.
** As of Monday, 22 cities in China were implementing full or partial lockdowns or some kind of district-based control measures, affecting 5.6% of population and 8.8% of GDP, according to a Nomura survey.
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