China shares rise as weak economic data raises policy easing hopes

SHANGHAI: Chinese shares rose on Wednesday after factory activity data raised hopes of an easing in policy, with consumer staples, real estate, financials and infrastructure sectors leading the gains.

** The blue-chip CSI300 index rose 1.3% to end at 4,869.46, while the Shanghai Composite Index gained 0.7% to 3,567.10.

** China's factory activity expanded at a slower pace while the services sector slumped into contraction in August.

** The real estate sub-index soared 5.5% after Reuters on Tuesday reported some major Chinese banks stepped up lending toward the end of August and reduced a backlog in property loans.

** A private survey shows that China's August new home prices rose at their slowest pace in five months, and China has moved to cap the cost of renting a home in cities.

** The infrastructure sub-index surged 3.9%, its biggest daily jump since July 2020.

** Chinese economist Ren Zeping suggested that the government should introduce counter-cyclical measures, including fiscal stimulus to boost infrastructure investment and structural easing of monetary policy to avoid hard lending of property sector.

** The consumer staples sub-index added 3%, the biggest daily gain since Aug. 10.

** The financials sub-index rose 3.2%.

** the resource sub-index plunged 4.2%, after China kicked off auctions for more industrial metals on Wednesday as Beijing aims to ease the pressure of high commodity prices on businesses.

** The new energy sub-index plummeted 5.6%, its biggest daily decline in one month.