SHANGHAI: China stocks rose on Thursday, led by financial shares, after state media said wealth effect via stock investing gains would help boost household consumption, while China’s services activity expanded at a faster pace in July.
China’s blue-chip CSI300 Index closed up 0.9%, while the Shanghai Composite Index was up 0.6%. The Hong Kong benchmark Hang Seng lost 0.5%.
China’s securities share rose 3.5%, with Guolian Securities Co Ltd up to a maximum of 10%.
The state media said wealth effect via stock investing gains would help boost consumer income and future income growth expectations and ultimately improve consumer spending.
Meanwhile, China’s services activity expanded at a slightly faster pace in July, supported by a jump in business in the summer travel season, a private sector business survey showed on Thursday, partly offsetting the drag from the weak manufacturing sector.
The survey result was better than the market expected, but stocks reacted minimally on the news.
Morgan Stanley downgraded MSCI China shares to equal weight as growth and valuation concerns remained.
Despite the policy easing signals from the July Politburo meeting, key issues, including local government financing vehicle debt, property and labour markets and the geopolitical situation, need to improve significantly for sustainable capital inflows and further re-rating, the analysts said.
In Hong Kong, private sector activity contracted for the first time in July, the survey showed, further pointing to a weak economy, especially for the manufacturing sector.
Tech stocks traded in Hong Kong, however, were up 0.4%, while mainland property developers were little changed.
Comments
Comments are closed for this article.