SHANGHAI: China shares rose on Friday led by property stocks, as Beijing rolled out more measures to support the sputtering housing sector and factory activity surprisingly expanded last month.
China’s blue-chip CSI300 Index closed up 0.7%, while the Shanghai Composite Index gained 0.4%. The Hong Kong market was closed due to typhoon Saola.
For the week, China’s CSI300 Index rose 2.2%, while Hong Kong’s benchmark Hang Seng Index added 2.4%.
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 is set to take further action including relaxing home-purchase restrictions, Reuters reported.
China’s CSI 300 Real Estate Index was up 2.4%.
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 2.7% and 4.4%, 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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