SHANGHAI: China stocks rose on Thursday, led by financial and property shares, after big banks officially cut deposit interest rates, while investors awaited May consumer price data on Friday for further direction. Hong Kong stocks closed roughly flat.
China’s blue-chip CSI300 Index closed up 0.8%, while the Shanghai Composite Index was up 0.5%.
Hong Kong’s benchmark Hang Seng Index edged up 0.3%, and the China Enterprises Index was flat.
Sectoral performances in China were mixed, with real estate shares extending their rally, while media and artificial intelligence stocks lost steam.
Banks rose 2% on news that China’s biggest banks have lowered interest rates on yuan deposits, in actions that could ease pressure on profit margins and reduce lending costs.
China welcomes well-performing foreign institutions to do business in the country and the risks in the financial sector are controllable overall, the head of its financial regulatory administration told the Lujiazui Forum in Shanghai.
In the same meeting, Yi Huiman, chairman of the China Securities Regulatory Commission, said the regulator attaches great importance to the supervision of the capital market and will continue to strengthen the monitoring and supervision of market trading behaviours.
Market participants are closely watching May consumer price and factory gate price data due to be released on Friday. Reuters poll showed a 0.2% rise in the Consumer Price Index, pointing to continued weak demand.
Financial and property shares supported the Hong Kong market in the afternoon session, while tech stocks were down 0.7 percent.
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