China stocks rebound on policy support, expanding factory activity

** Foreign investos bought a net 3.8 billion yuan ($529.40 million) of Chinese shares via the Stock Connect so far on the day, set for a third stragigh session of net inflows. ** The latest measures by authorities to support the property sector is also improving sentiment.

China stocks rebounded on Thursday following four sessions of declines, after a private-sector survey showed the country's factory activity expanded modestly in January, while efforts to stabilise the market by the "national team" also helped. ** The blue-chip index added 0.7% on the first day of February, after posting a record six monthly declines in a row, while the Shanghai Composite slipped 0.2% by the midday recess.

** Hong Kong's Hang Seng Index jumped 1.4%, and the Hang Seng China Enterprises Index climbed 1.5%. ** The Caixin/S&P Global manufacturing PMI stayed at 50.8 in January, unchanged from December and surpassing analysts' forecasts of 50.6, helping lift business confidence to a nine-month high.

** The positive outturn, however, contrasted with a much larger official survey on Wednesday showing manufacturing activity contracted again last month, pointing to a still-underperforming economy in need of more policy support. ** A rescue operation is underway in China's equity markets with large and unusual flows into blue-chip funds suggesting a plunge by state-backed investors.

** More than $17 billion flowed to four Chinese-domiciled exchange traded funds tracking the CSI 300 index in the month to Jan. 26, S&P Global Market Intelligence found. ** Shares in artificial intelligence jumped nearly 4% to lead the gains, while new energy and health care stocks climbed more than 1% each.

** In Hong Kong, tech giants surged 3.2%, and healthcare shares advanced 3.4%. ** Foreign investos bought a net 3.8 billion yuan ($529.40 million) of Chinese shares via the Stock Connect so far on the day, set for a third stragigh session of net inflows.

** The latest measures by authorities to support the property sector is also improving sentiment. A state-backed property project in China has received the first development loan under a so-called whitelist mechanism and two more major cities have eased home-buying curbs.