HONG KONG: China stocks rose for a seventh straight session, while Hong Kong stocks advanced on gains in tech and financials as investors cheer policymakers’ efforts to boost market confidence.
China’s stocks rise for 6th session
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The blue-chip CSI 300 Index grew 1.8% to its highest level since Dec. 1, while the Shanghai Composite Index rose 1.7%.
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Hong Kong’s Hang Seng Index surged 3% to hit a new high since Jan. 2, and the Hang Seng China Enterprises Index gained 3.6%.
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China introduced a raft of measures after the Lunar Chinese New Year holiday to boost market sentiment and prop up the economy.
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The central bank announced a large-than-expected benchmark mortgage rate cut in response to weak housing demand.
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On Tuesday, China’s stock exchanges said major quant fund Lingjun Investment had broken rules on orderly trading and barred it from buying and selling for three days as part of wider regulatory efforts to revive market confidence.
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This comes a day after the country’s securities watchdog said it held a series of seminars with market participants who proposed tighter scrutiny of company listings and trading behaviour.
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“It’s unlikely any single measure will lead to a 180 degree change in market sentiment but these measures are helpful,” said Jian Shi Cortesi, an investment director for Asia/China growth equities at GAM Investments.
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“I believe the government will not stop finding ways to improve sentiment until the goal is achieved.”
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Automobile and real estate companies led the gains, adding 3.3% and 2.6%, respectively.
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In Hong Kong, tech giants jumped 4.5%, with index heavyweight Meituan surging 7%.
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Hong Kong-listed mainland banks also gained 3.4%.
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