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China stocks gain as policy easing expectations rise; Hong Kong up

China stocks gain as policy easing expectations rise; Hong Kong up

reuters.com · 09/01/2021 00:59
China stocks gain as policy easing expectations rise; Hong Kong up

- Chinese shares rose on Wednesday after factory activity data raised hopes of an easing in policy, with consumer staples, real estate, financials and infrastructure sectors leading the gains.

The CSI300 index .CSI300 rose 1.8% to 4,890.14 at the end of the morning session, while the Shanghai Composite Index .SSEC gained 0.9% to 3,574.56.

The Hang Seng index .HSI added 0.6% to 26,038.35. The Hong Kong China Enterprises Index .HSCE gained 1.4% to 9,313.05.

** China's factory activity expanded at a slower pace while the services sector slumped into contraction in August. nL1N2Q201P

** The real estate sub-index .CSI000952 soared 5.7% after Reuters on Tuesday reported some major Chinese banks stepped up lending toward the end of August and reduced a backlog in property loans. nP8N2OK01Y

** The infrastructure sub-index .CSI000950 surged 4.6%, the biggest daily gain since July 2020.

** Chinese economist Ren Zeping suggested that the government should introduce counter-cyclical measures, including fiscal stimulus to boost infrastructure investment and structural easing of monetary policy to avoid hard lending of property sector.

** The consumer staples sub-index .CSICS added 3.5%, the biggest daily gain since Aug 10. The financials sub-index .CSIFN rose 3.7%.

** The new energy vehicle sub-index .CSI399976 and the resource sub-index .CSI000805 declined 3.5% and 3.7%, respectively.

** In Hong Kong, stocks rose as the city's retail sales climbed for the sixth straight month in July. nL4N2Q22EQ

** Tech companies led the gains, with the Hang Seng Tech Index .HSTECH rising 1.8%. Index constituents Meituan 3690.HK, Tencent Holdings 0700.HK and Alibaba Group 9988.HK went up 2.5%, 2%, and 0.7%, respectively.

** WuXi Biologics 2269.HK dropped 3.2%, the second-biggest decliner on the Hang Seng Index, dragging the benchmark down 27 points.

** China stepped up its reform of healthcare service pricing at public medical institutions on Tuesday with the announcement of a pilot programme aimed at controlling costs for consumers.nL1N2Q211Q

(Reporting by Shanghai Newsroom; editing by Uttaresh.V)