SHANGHAI, Nov 25 — China stocks rose on Friday, boosted by property developers after the country’s latest measures to support the beleaguered sector, while Hong Kong shares were dragged down by tech firms as China reported record-high new daily Covid-19 cases.
The blue-chip CSI 300 Index rose 0.5 per cent by the end of the morning session, while the Shanghai Composite Index added 0.4 per cent.
However, Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index declined 0.9 per cent each.
China’s biggest commercial banks have pledged at least US$162 billion (RM722 billion) in fresh credit to property developers, bolstering recent regulatory measures rolled out to ease a stifling cash crunch in the sector and lifting property shares.
Chinese real estate developers more than 5 per cent, and banks gained 2.1 per cent.
Shares of Chinese state-owned enterprises (SOEs) also outperformed the broad market, as investors heed regulators’ call to build a market valuation system “with Chinese characteristics”. An index measuring China infrastructure companies with most constituents being SOEs, rose 2.6 per cent.
Most other sectors declined, as China on Friday reported another record high of daily Covid-19 cases, with cities across the country enforcing measures and curbs to control outbreaks.
“Concerns over the reopening outlook rose again with domestic Covid-19 cases rising and tightening measures returning to a number of major cities,” said Morgan Stanley analysts in a note.
“A-share sentiment likely to stay volatile near term as China’s preparation for reopening fluctuates with mixed signals.”
The Chief Investment Office (CIO) at UBS Securities said it will take time before a directional trend in Chinese equities can be seen and investors should continue to position themselves for a slow but gradual recovery in China’s economy via non-directional opportunities.
Tech giants listed in Hong Kong lost 2.1 per cent to drag the city’s Hang Seng benchmark on mainland’s Covid worries, with index heavyweights Tencent and Meituan down 3.7 per cent and 2.9 per cent, respectively. — Reuters