China stocks climb on stimulus prospects, US Fed view

SHANGHAI: China stocks advanced on Tuesday as reports of Beijing’s latest stimulus rollout for the property sector lifted risk appetite, while traders also found comfort on expectations the US Federal Reserve is likely done with interest rate hikes.

** The blue-chip CSI 300 Index gained 0.7%, while the Shanghai Composite Index added 0.5% by the midday recess.

** Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index jumped roughly 1% each.

** Broad Asian shares climbed to fresh two-month highs, boosted by a rally on Wall Street while the dollar languished near its lowest in two-and-a-half months.

** Markets have broadly rebounded in November as a flurry of data showed US inflation might be easing has spurred bets that the Fed is done with monetary tightening and rate cuts may be on the way next year.

** China’s yuan extended its winning streak on Tuesday, scaling a nearly four-month high against the greenback.

** Chinese regulators are drafting a list of 50 real estate developers eligible for a range of funding, Bloomberg News reported on Monday, citing people familiar with the matter.

** The list, which includes both private and state-owned real estate developers, will guide financial institutions in providing support for the sector via bank loans, debt and equity financing, the report said.

** The CSI 300 Real Estate Index jumped 3.6%, while the Hang Seng Mainland Properties Index surged 4.3%.

** Shares of Sunac China Holdings jumped nearly 20% after the embattled property developer said each of its restructuring conditions have been met and its debt overhaul plan has become effective.

China, HK equities rise as investors turn positive

** “We expect Beijing may eventually have to play the role of lender of last resort to rescue some major troubled developers and fill the vast funding gap for building and delivering those presold homes,” said Ting Lu, chief China economist at Nomura.

** Foreign investors bought a net 4.2 billion yuan ($582.44 million) of Chinese shares via the Stock Connect so far on the day.

** In mainland markets, consumer staples and energy shares climbed 1.2% each.

** In Hong Kong, tech giants gained nearly 1%, with Alibaba Group and Meituan up more than 3% each.