SHANGHAI: China and Hong Kong shares rose on Tuesday after Beijing extended its policy support to the ailing property sector, fuelling hopes for a fresh round of easing.

** The blue-chip CSI300 Index rose 0.6% by midday break, while the Shanghai Composite Index gained 0.5%. Hong Kong’s Hang Seng Index climbed 1.5%.

** Hong Kong-listed China developers jumped as much as 3.2% after China on Monday extended until the end of 2024 some policies in a November rescue package to shore up the real estate sector. China property shares rose as much as 1.6%, before ending the morning session up 0.2%.

** Although the measures “have reversed most of the Volcker-style financing tightening measures for the property sector, they are unlikely to sufficiently stimulate home purchases and rescue the property sector,” wrote Ting Lu, chief China economist at Nomura.

“Beijing may need to take more action to arrest the downward spiral.”

** The view was echoed by Macquarie economist Larry Hu, who said the fresh easing “is far from enough to stabilise the sector.”

** “However, today’s moves could be a signal that more property easing is coming,” he said, forecasting policies such as lowering the down-payment ratio and easing purchase restrictions.

HK, China stocks rebound amid hopes Sino-US ties improving and tech crackdown ending

** The Hang Seng Tech Index was up 2.1%, extending a rally triggered by China’s $984 million fine for Ant Group, which signals the end of a regulatory crackdown on the country’s technology sector. Alibaba shares rose 1.9%, while Tencent gained 1.6%.

** Tech stocks in China also rose.

** The tech-focused STAR Market gained 0.9%, while the chipmaking index jumped 2.3%.