China stocks fall as frenzy over policy easing ebbs

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SHANGHAI, Nov 12 (Businesshala) – Shares in China fell on Friday, as shares of real estate developers retreated from the frenzy of betting on policy easing in the property sector in the previous session.

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** The CSI300 index was down 0.3% at 4,883.56 at the end of the morning session, while the Shanghai Composite Index was flat at 3,532.57.

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** The Hang Seng Index rose 0.2% to 25,302.94. The Hong Kong China Enterprise Index rose 0.3% to 9,078.21.

** For the week, the Shanghai Composite Index added 1.2%, its biggest weekly gain in two months. The Hang Seng Index gained 1.7%, its highest gain in three weeks.

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** Real-estate firms tumbled 2.4% a day after experiencing their best session in nearly seven years, as investors battered Chinese property stocks amid positive cues on hopes of a policy easing .

** Bankers and analysts, however, said China will stick to policies to curb over-borrowing by property developers, even as it tries to help home buyers and “appropriate” measures amid the industry’s liquidity crisis. Makes changes to financing to meet demand.

** There is little evidence that rules preventing debt creation in the sector will be withdrawn.

** “We do not expect systemic risk from the asset market, however, this could remain a concern ahead of the December/January offshore bond redemption season,” Morgan Stanley said in a note.

** “We recommend being alert to potential spillovers in the equity market.”

** High-end equipment manufacturers and defense stocks rose 2.4% and 3.4%, respectively.

** Hong Kong’s benchmark Hang Seng Index rises on tech giants’ gains, Hang Seng Tech Index climbs 0.9%

** Shares of JD.com Inc rose 4.9% after the e-commerce group posted a record-breaking ‘Singles Day’ grand promotion.

** China’s biggest chip maker Semiconductor Manufacturing International Corp fell nearly 5% after its vice president resigned in a leadership reshuffle.

** Hotspot chain Haidilao International Holding Ltd fell 7.4%, the biggest percentage drop in the Hang Seng index, as it planned a $302 million share sale to repay credit facilities.

Reporting by Shanghai Newsroom; Editing by Sherry Jacob-Phillips

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