China stocks gain on fresh stimulus measures; tech, property drag HK lower

China stocks rose on Monday, buoyed by fresh government stimulus and improving credit data, but technology and property sector shares dragged the Hong Kong market lower. In Hong Kong, the benchmark Hang Seng Index dropped 0.58%, its fourth straight session of declines. ** New bank lending in China beat expectations by nearly quadrupling in August from July's level.

China stocks rose on Monday, buoyed by fresh government stimulus and improving credit data, but technology and property sector shares dragged the Hong Kong market lower. ** China's bluechip CSI300 Index rose 0.74% by the lunch break, while the Shanghai Composite Index climbed 0.84%. In Hong Kong, the benchmark Hang Seng Index dropped 0.58%, its fourth straight session of declines.

** New bank lending in China beat expectations by nearly quadrupling in August from July's level. Earlier on Saturday, government data shows consumer prices returned to positive territory in August. ** China's financial regulator on Sunday reduced the risk weighting it attaches to insurance companies' holdings of blue-chip shares and tech stocks.

** "This strategic modulation in risk factors signifies an expanded gateway for insurance companies to channel more resources into the capital market," OCBC Bank analyst Tommy Xie wrote. ** From Monday, investors are allowed to borrow more money from brokerages to buy stocks using the same amount of collateral, with the move expected to inject roughly 400 billion yuan ($54.70 billion) of fresh capital into the market.

** China's securities regulator said it recently held a meeting with domestic and overseas investors including Temasek, Bridgewater and BlackRock to discuss ways to boost investor confidence. ** There are signs that "some long-term investors added positions on dips via ETF amid weak stock market sentiment", UBS China equity strategist Lei Meng wrote in a note.

** Hong Kong-listed mainland developers declined 1.8% on signs that property sales in China remain sluggish despite a flurry of supportive measures. ** Sun Hung Kai Properties slumped 9.5% after the Hong Kong property giant reported a 17% decline in underlying profit for the year ended June.

** The Hang Seng Tech index narrowed early losses and closed down 0.2%. Hang Seng Index heavyweight Alibaba Group fell sharply after the surprise departure of outgoing CEO Daniel Zhang from the cloud business. ($1 = 7.3125 Chinese yuan renminbi)