SHANGHAI: China stocks rebounded on Tuesday as real estate developers continued to rise on news that Beijing was planning to set up a fund to aid the troubled industry.
The CSI300 index rose 0.9% to 4,250.82 at the end of the morning session, while the Shanghai Composite Index gained 0.8% to 3,276.71. The Hang Seng index added 1.5% to 20,868.29.
The Hong Kong China Enterprises Index gained 1.5% to 7,182.28.
** Real estate developers jumped 5.4% in China, and mainland developers climbed 3.3% in Hong Kong, extending gains from the previous session.
** China will launch a real estate fund to help property developers resolve a crippling debt crisis, aiming for a warchest of up to 300 billion yuan ($44 billion) to restore confidence in the industry, a state bank official told Reuters.
** Investors are also eyeing the Federal Reserve’s rate decision and China’s Politburo meeting this week, while details of the property policy are also expected, as policy is significant in boosting market sentiment, said Wang Mengying, stock index futures analyst at Nanhua Futures.
** China will also step up financial support for the recovery of the cultural and tourism sectors, the central bank and the industry’s ministry said, pusing tourism-related companies up 2.2%.
** Energy shares added 2.7%, non-ferrous metal companies rose 2.2%, and new energy firms gained 1.9%.
** The Hang Seng Tech Index rose 1.5%, with Alibaba Group up 6% to lead the gains,
** Alibaba will apply for a primary listing in Hong Kong and keep its US listing, and Ant Group executives are no longer part of Alibaba Partnership, a body that can nominate the majority of the e-commerce giant’s board.