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China stocks up as property shares surge on policy easing bets

reuters.com · 11/11/2021 02:47
China stocks up as property shares surge on policy easing bets

- China stocks gained more than 1% on Thursday, bucking the trend in Asia, as investors snapped up battered property shares, betting Beijing will relax policies to prevent a sector-wide collapse.

** The blue-chip CSI300 index .CSI300 rose 1.6%, to 4,898.65 points, while the Shanghai Composite Index .SSEC gained 1.2% to 3,532.79 points.

** The CSI300 Real Estate index, which tracks blue-chip property shares, .CSI000952 surged 9% in its best day in nearly seven years. A broader property index .CSI000006 jumped 6.8%.

** Investors are piling into property stocks, which had been battered by strict government curbs and China Evergrande Group's debt woes, as a slew of positive signals recently fan hopes for policy easing.

** A think tank of China's State Council met a local property association and financial institutions in Guangzhou, Chinese media reported on Thursday, days after the agency, which makes policy recommendations, held a similar meeting with developers and banks in Shenzhen. nB9N2RH01T

** On Wednesday, the Securities Times reported some real estate companies disclosed plans to issue debt in the interbank market at a meeting with market regulators. Some see it as a sign that developers' financing conditions are improving.

** Data showing a rise in new mortgage loans in October and news on Thursday that Evergrande bondholders received coupon payments from the indebted developer also aided sentiment.

** "China needs to relax property curbs, because the industry is so important to economic growth," said Liam Zhou, founder of Shanghai-based hedge fund house Minority Asset Management.

** Bank stocks also rose in China and Hong Kong on receding fears that further defaults by developers would erode banks' balance sheets.

** Chinese brokerages shares .CSI399707 also rose sharply on Thursday, as investors bet they will benefit from the imminent launch of the Beijing Stock Exchange.


(Reporting by Shanghai Newsroom; Editing by Jacqueline Wong)

((Samuel.shen@tr.com))