SHANGHAI: China stocks ended the week on a bullish note on Friday, bolstered by data confirming heavy buying from sovereign fund Huijin, and expectations of fresh government support to the ailing property sector. Hong Kong shares rose to a one-month high.
China’s main Shanghai Composite index closed up 0.68%, while the blue-chip CSI300 index ended up 1.33%.
Both indexes nevertheless registered their fourth month of declines.
State-backed Central Huijin Investment boosted ownership in a handful of blue-chip exchange-traded funds (ETFs), according to the fund managers’ mid-year reports.
For example, Huijin Investment tripled its ownership in E Fund CSI300 Index ETF to 67% in the first half, and boosted its holdings in ChinaAMC China50 ETF by 70%.
Sentiment was also lifted by a surge in property shares, after media reports that China is considering allowing its homeowners to refinance as much as $5.4 trillion in mortgages to reduce borrowing costs.
China’s blue-chip CSI300 index was up 1.33%, with its financial sector sub-index higher by 0.13%, the consumer staples sector up 2.48%, the real estate index up 5.32% and the healthcare sub-index up 1.6%.
At the close of trade, the Hang Seng index was up 202.75 points or 1.14% at 17,989.07. The Hang Seng China Enterprises index rose 1.34% to 6,331.14.
The sub-index of the Hang Seng tracking energy shares rose 0.7%, while the IT sector rose 2.03%, the financial sector ended 0.12% lower and the property sector rose 1.59%. Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.62%, while Japan’s Nikkei index closed up 0.74%.
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