SHANGHAI: Shanghai stocks rose to a nine-month high on Monday, as China’s March home price data and signs of corporate earnings recovery fuel optimism ahead of the release of first-quarter economy data. Hong Kong shares also gained.
** The Shanghai Composite Index, which had posted five consecutive weekly gains on Friday, climbed nearly 1% by the lunch break, touching its highest level since July 8. The bluechip CSI300 Index was up 0.9%.
** In Hong Kong, both the benchmark Hang Seng Index and the Hang Seng Tech Index rose 0.5%.
** China’s new home prices rose in March at the fastest pace in 21 months, official data showed on Saturday.
** More than 300 China-listed companies have published, or forecast first-quarter results, 70% of which have reported year-on-year profit increases, official Securities News reported.
** Underscoring consumption recovery, restaurant operator China Quanjude Group reported a 49% jump in sales during the January-March period, and turned to a profit.
** Travel-related companies including Lijiang Yulong Tourism Co and BTG Hotels Group also expect a quarterly profit.
** “The stock market is expected to trend higher on the back of economic recovery, and expectations of improving liquidity situations overseas,” Guotai Asset Management Co said in a note.
** A Reuters poll showed that China’s gross domestic product (GDP), data for which will be published on Tuesday, likely grew 4.0% in the first quarter from a year earlier, from 2.9% in the previous three months. That would be the fastest growth since the first quarter of last year.
China stocks rise as chip makers, resource shares jump
** An index tracking hotel and catering industry jumped 2.5%, while energy stocks also gained 2.5%, reflecting recovery hopes.
** Investors continued to plough money into China’s state-owned companies on reform hopes. China Mobile shares jumped 3.8% in Shanghai, their highest since its debut last January. Its Hong Kong-listed stock rose 1.6%.
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