Chinese equity market shows gain amid boost in home prices

China's equity markets shook off a weak start to trade higher on Tuesday, as stronger March data for new home prices added to hopes that Beijing's stimulus measures aimed at boosting the economy were having an effect.

At the midday break, the Shanghai Composite index was up 1.11 per cent at 3,213.06 points, having earlier dropped as much as 0.76 per cent. ** China's blue-chip CSI300 index was up 1.35 percent, with its financial sector sub-index higher by 2.26 percent, the consumer staples sector up 1.01 percent, while the real estate index rose 0.19 percent and the healthcare sub-index climbed 0.57 percent.

Chinese H-shares listed in Hong Kong rose 1.13 per cent to 11,763.53, while the Hang Seng Index was up 0.63 per cent at 29,999.07. ** Average new home prices in China's 70 major cities rose 0.6 per cent in March, quickening from a 0.5 per cent gain in February, according to Reuters calculation of data released by the National Bureau of Statistics (NBS) on Tuesday. On an annual basis, home prices rose 10.6 per cent in March, the highest since April 2017, and up from a 10.4 per cent gain in February.

Stronger housing prices are seen as adding to hopes for positive economic data on Wednesday when China is due to release its first-quarter gross domestic product. Reuters poll showed expectations that China's first-quarter economic growth likely slowed to its weakest pace in at least 27 years, but stimulus measures are expected to set the stage for a recovery.

The smaller Shenzhen index was up 0.31 per cent and the start-up board ChiNext Composite index was weaker by 0.19 per cent. ** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.21 per cent, while Japan's Nikkei index rose 0.25 per cent. ** The yuan was quoted at 6.7091 per U.S. dollar, 0.01 per cent weaker than the previous close of 6.7085. ** The largest percentage gainers in the main Shanghai Composite index were Guangdong Meiyan Jixiang Hydropower Co Ltd, up 10.11 per cent, followed by Geo-Jade Petroleum Corp, gaining 10.06 per cent and Liaoning Hongyang Energy Resource Invest Co Ltd, up by 10.06 per cent.

The largest percentage losses in the Shanghai index were Shanghai Zhixin Electric Co Ltd, which fell 9.99 per cent, followed by Qingdao Huijintong Power Equipment Co Ltd, which lost 9.94 per cent and Guangzhou Holike Creative Home Co Ltd, which slipped 9.43 per cent. ** So far this year, the Shanghai stock index surged 27.42 per cent, while China's H-share index is up 14.9 per cent. Shanghai stocks have risen 2.82 per cent this month.

The top gainers among H-shares were China Construction Bank Corp, up 2.89 per cent, followed by Guangdong Investment Ltd, gaining 2.82 per cent and Industrial and Commercial Bank of China Ltd, up by 2.39 per cent. ** The three biggest H-shares percentage decliners were Great Wall Motor Co Ltd, which dropped 3.04 per cent, China Vanke Co Ltd, which lost 1.9 per cent and Air China Ltd, down by 1.9 per cent.

In Hong Kong, the sub-index of the Hang Seng index tracking energy shares rose 0.4 per cent while the IT sector rose 0.8 per cent. The top gainer on the Hang Seng was China Construction Bank Corp, up 2.89 per cent, while the biggest loser was Sunny Optical Technology Group Co Ltd, which was down 3.02 per cent.