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China shares rise as weak economic data raises policy easing hopes

reuters.com · 09/01/2021 03:48
China shares rise as weak economic data raises policy easing hopes

- 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 blue-chip CSI300 index .CSI300 rose 1.3% to end at 4,869.46, while the Shanghai Composite Index .SSEC gained 0.7% to 3,567.10.

** 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 5.5% 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

** A private survey shows that China's August new home prices rose at their slowest pace in five months, and China has moved to cap the cost of renting a home in cities. nL4N2Q319K nL1N2Q309Y

** The infrastructure sub-index .CSI000950 surged 3.9%, its biggest daily jump 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%, the biggest daily gain since Aug. 10.

** The financials sub-index .CSIFN rose 3.2%.

** the resource sub-index .CSI000805 plunged 4.2%, after China kicked off auctions for more industrial metals on Wednesday as Beijing aims to ease the pressure of high commodity prices on businesses. nL1N2Q301E

** The new energy sub-index .CSI399808 plummeted 5.6%, its biggest daily decline in one month.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)