China stocks rise on bets of property policy easing

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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.

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** 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%.

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** 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.

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** 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)

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