SHANGHAI: China shares rose on Friday, led by property stocks, as Beijing rolled out measures to support the housing sector, while factory activity in August surprised investors on the upside.
China’s blue-chip CSI300 Index climbed 0.5% by the lunch break, while the Shanghai Composite Index gained 0.2%. The Hong Kong market was closed due to typhoon Saola.
China’s central bank and financial regulator issued notices to ease some borrowing rules to aid homebuyers, including lowering the existing mortgage rate for first-home buyers and the down payment ratio in some cities, in latest efforts to revive the crisis-hit property market.
Analysts said the move should improve sentiment around the property market.
Following this, five of China’s biggest banks cut interest rates on a range of deposits in a coordinated effort to ease pressure on their shrinking margins as lenders move to lower mortgage rates.
China’s CSI 300 Real Estate Index was up 2.3%.
Meanwhile, China’s factory activity surprisingly returned to expansion in August, with supply, domestic demand and employment improving, suggesting official efforts to revive growth might be having some effect.
Energy and coal-related shares were up 2.1% and 3.6%, respectively.
The market is also watching a key vote of embattled Chinese developer Country Garden. The company has delayed a deadline for creditors to vote on whether to postpone payments for an onshore private bond to Friday.
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