SHANGHAI, Nov 11 (Businesshala) – Shares in China rose more than 1% on Thursday, bucking the trend in Asia, as investors broke into battered asset stocks, betting Beijing to prevent a sector-wide collapse. will relax the policies for
** The blue-chip CSI300 index rose 1.6% to 4,898.65, while the Shanghai Composite Index gained 1.2% to 3,532.79.
** The CSI300 Real Estate Index, which tracks blue-chip property stocks, rose 9% on its best day in nearly seven years. A broader asset index jumped 6.8%.
**Investors are hoarding in asset stocks, which were battered by tough government sanctions and China Evergrande Group’s debt crisis, with recent positive signs as fans expect policy easing.
** A think tank of China’s State Council met with a local property association and financial institutions in Guangzhou, Chinese media reported Thursday, the agency, which makes policy recommendations, held similar meetings with developers and banks in Shenzhen. held the meeting.
** On Wednesday, the Securities Times reported that some real estate companies disclosed plans to issue loans in the interbank market in a meeting with market regulators. Some see this as a sign that the financial condition of developers is improving.
** Data showing an increase 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 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 Jacqueline Wong)