SHANGHAI: China stocks rebounded on Friday after data showed factory and retail sectors sped up in November, and as authorities’ decision to support the property market also boosted sentiment.
** The blue-chip CSI 300 Index gained 0.7%, and the Shanghai Composite Index added 0.3% by the midday recess.
** Hong Kong’s Hang Seng Index rose 3%, set to book its biggest daily jump in a month, and the Hang Seng China Enterprises Index advanced 3.3%.
** The broad Asian share market hit a four-month peak on Friday as sharp declines in the US dollar and yields extended the Fed-fuelled rally, but pushback on rate cuts from central banks in Europe may deal a blow to the global pivot hopes.
** China’s industrial output grew 6.6% in November year-on-year, faster than the 4.6% gain in October, and retail sales rose but missed forecasts, adding to signs Beijing’s recent flurry of stimulus is helping stabilise the economy.
** Beijing and Shanghai relaxed home purchase restrictions on Thursday, including by lowering the minimum deposit ratio for first and second homes, suggesting renewed efforts by Chinese authorities to revive the sluggish housing market.
** “We continue to expect more housing easing measures in coming months, including more relaxation of home purchase restrictions in large cities, among others,” Goldman Sachs said in a note.
** Real estate shares jumped 3% to lead gains in the market.
Chinese stocks rise as investors await policy signals
** Foreign investors bought a net 5.3 billion yuan ($745.58 million) of Chinese shares so far on the day.
** China’s central bank boosted liquidity injections, but kept the interest rate unchanged when rolling over maturing medium-term policy loans on Friday.
** Tech giants listed in Hong Kong surged 3.5%, and mainland developers soared 4.7%.
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