China stocks rise on property support steps; COVID woes cap gains

** The Hang Seng index dropped 0.4% to 17,587.87 points, while the Hong Kong China Enterprises Index lost 0.5%. ** Chinese property shares rose after news that China's central bank will provide 200 billion yuan( $27.92 billion) in loans to six commercial banks for housing completions, the latest in a slew of government measures to ease the sector's liquidity shortage.

China stocks rose on Tuesday, aided by fresh government moves to aid the struggling property sector, although the gains were capped by worsening COVID-19 situation in the country. ** In Hong Kong, stocks tracked Asian markets lower.

** Both the CSI300 index and the Shanghai Composite Index rose 0.8% by the lunch break, to 3,798.29 points, and 3,108.30 points, respectively. ** The Hang Seng index dropped 0.4% to 17,587.87 points, while the Hong Kong China Enterprises Index lost 0.5%.

** Chinese property shares rose after news that China's central bank will provide 200 billion yuan( $27.92 billion) in loans to six commercial banks for housing completions, the latest in a slew of government measures to ease the sector's liquidity shortage. ** Chinese property shares listed in Hong Kong rose more than 3% at one point but gave up most of the gains by the lunch break.

** The Chinese market was also aided by signs of ample liquidity, evidenced by China's key money rate falling to a near 23-month low on Tuesday. ** However, sentiment was curbed by rising COVID-19 inflections across China.

** Beijing shut parks and museums on Tuesday, while more Chinese cities resumed mass testing, as China fights a fresh nationwide spike in cases that has deepened concerns about its economy. ** The tally on COVID-19 case numbers has surged further over the past week, and business activity still shows broad-based weakness, Nomura said in a note to clients.

** China's financials and energy shares rose , but health and environment protection sectors fell. ** In Hong Kong, tech stocks dropped more than 1%.