SHANGHAI: Shanghai stocks ended at a nine-month high on Monday, as China’s March home price data and signs of corporate earnings recovery fuelled optimism ahead of the release of first-quarter economy data. Hong Kong shares also gained.
The Shanghai Composite Index, which posted five consecutive weekly gains on Friday, climbed 1.4%, its biggest jump in two months and highest level since July 8. The bluechip CSI300 Index was also up 1.4%.
The Hong Kong benchmark Hang Seng Index rose 1.7%, while the Hang Seng Tech Index jumped 2.2%.
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.
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