SHANGHAI, Nov 11 (Businesshala) – Shares in China rose on Thursday, bucking trends in Asia, as investors scuttled asset stocks on bets that Beijing will ease policies to prevent a sector-wide collapse. . Hong Kong shares fell slightly.
** China’s blue-chip CSI300 index rose 0.9% in morning trade, while the Shanghai Composite Index gained 0.6%. Hong Kong’s benchmark Hang Seng Index is down 0.2%.
** In contrast, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.7% when data showed US consumer prices rose at the fastest pace since 1990 last month.
** Sentiment in China and Hong Kong was fueled by a sharp rebound in asset stocks amid positive cues, with fans hoping for policy easing.
** The CSI300 real estate index rose nearly 8%, while an index tracking Hong Kong-listed mainland developers jumped more than 3%.
** A think-tank of China’s State Council met a local property association and financial institutions in Guangzhou, Chinese media reported on Thursday, after the agency held a similar meeting with developers and banks in Shenzhen.
** On Wednesday, the Securities Times reported that some real estate companies disclosed plans to issue loans in the inter-bank market in a meeting with market regulators.
** Data showing an increase in new mortgage loans in October and news that bondholders in China Evergrande Group received coupon payments from the indebted developer also aided sentiment.
** “China needs to ease asset restrictions, as the industry is vital to economic growth,” said Liam Zhou, founder of Shanghai-based hedge fund house Minority Asset Management.
** Bank stocks in China and Hong Kong also rose on fears that further defaults by developers would damage the balance sheets of banks.
** Chinese brokerage shares also rose sharply on Thursday, as investors bet they would benefit from the imminent launch of the Beijing Stock Exchange. (Reporting by Shanghai Newsroom; Editing by Ramakrishnan M)