SHANGHAI: China stocks rebounded on Thursday on strong foreign inflows, with overseas investors snapping up big-cap Chinese companies as policy expectations and the market’s low valuation offered attractive opportunities.
** The blue-chip CSI 300 Index jumped 1.9%, set to log the biggest gain in five months and the Shanghai Composite Index added 1.1%.
** Hong Kong’s Hang Seng Index surged 1.5%, and the Hang Seng China Enterprises Index climbed 1.8%.
** The broad Asian shares also touched five-month highs as market wagers on ever-more aggressive rate cuts extended a huge rally in US stocks and bonds, but also left plenty of scope for disappointment next year.
** Foreign investors bought a net 11.3 billion yuan ($1.59 billion) of Chinese stocks via the Stock Connect so far on the day, on course to book the biggest daily inflow in five months.
** In mainland markets, new energy stocks jumped 6% to lead the gains, while shares in real estate developers, consumer staples and tourism firms rose between 2% and 3%.
HK shares rise as gaming firms rebound; China edges up
** “In the market, valuation and sentiment indicators are all at record low levels,” said Huajin Securities in a note, adding there is limited room for further decline.
** The broker said markets expected possible rate cuts early next year, while recent data showing double-digit gains in China’s November industrial profits also helped sentiment.
** China will strive to expand domestic demand, ensure a speedy economic recovery and promote stable growth, according to an interim report on China’s 14th five-year plan published by parliament on Wednesday.
** Tech giants listed in Hong Kong gained 2.1%, with Meituan up 4.3%. The Hang Seng Mainland Properties Index advanced 3%.
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