SHANGHAI: China stocks edged up on Friday as investors cautiously awaited policy signals from the ongoing Communist Party Congress, with property developers and brokerages leading gains amid authorities’ latest measures to stabilise markets.
** The blue-chip CSI 300 Index rose 0.2% by the end of the morning session, and the Shanghai Composite Index added 0.5%.
** The Hang Seng Index slipped 0.2%, while the Hang Seng China Enterprises Index rose 0.2%.
China shares rebound, HK stocks trim losses on COVID easing hopes
** All eyes are on the results of China’s leadership reshuffle, which will be disclosed this weekend as the Communist Party Congress concludes.
** Securities firms rose 1.3% after China’s state-owned margin financing loan provider said on Thursday it will cut brokerages’ borrowing costs in a bid to promote stock investments.
** Property developers added 1.5% after state media said China’s securities regulator will ease rules to allow certain property-related companies to raise capital via the domestic stock market.
** The moves come as Beijing rolls out measures to help stabilise markets during the ongoing Party Congress.
** However, shares of Chinese chipmakers retreated 2.2%, following a 5% jump from the previous session.
** Chinese chipmaker Yangtze Memory Technologies Co (YMTC) denied a media report that it had participated in emergency meetings convened by China’s industry ministry to discuss the impact of US sanctions.
** “Sentiment stayed range-bound amid sizeable market sell-off pressure. With lack of immediate clarity on zero-COVID and economic growth policy, we emphasize refocusing on fundamentals – corporate earnings,” said Morgan Stanley in a note, expecting further consensus estimate cuts to continue into 3Q result season.
** Mainland developers listed in Hong Kong jumped 2%, while tech giants traded in the city inched up 0.3%.
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