China and Hong Kong stocks jump thanks to new real estate stimulus

Shares in China and Hong Kong closed higher on Friday as investors applauded Beijing’s moves to stabilize the crisis-hit real estate sector.

Led by construction firms, most sectors advanced in the session after China announced a series of measures ranging from allowing local governments to buy “some” apartments, to easing mortgage rules, to promising deliver unfinished houses.

The measures offset stagnant sentiment the morning after disappointing retail sales and real estate data.

“We have seen greater urgency from policymakers to stabilize the housing market, which is good news after we saw home prices in April with the largest monthly decline of the current cycle,” said Lynn Song, chief economist by ING.

The CSI300 real estate index and Hong Kong-listed mainland real estate companies jumped 9% and 5%, respectively.

At the close, the Shanghai index rose 1.01%, while the CSI300 index, which brings together the largest companies listed in Shanghai and Shenzhen, rose 1.03%. Hong Kong’s Hang Seng Index rose 0.91%.

. In TOKYO the Nikkei index fell by 0.34%, to 38,787 points.

. In HONG KONG the HANG SENG index rose by 0.91%, to 19,553 points.

. In SHANGHAI the SSEC index gained 1.01% to 3,154 points.

. The CSI300 index, which brings together the major companies listed in SHANGHAI and SHENZHEN, advanced by 1.03%, to 3,677 points.

. In SEOUL the KOSPI index fell by 1.03% to 2,724 points.

. In TAIWAN the TAIEX index recorded a decline of 0.21%, to 21,258 points.

. IN SINGAPORE the STRAITS TIMES index rose by 0.26%, to 3,313 points.

. In SYDNEY the S&P/ASX 200 index fell by 0.85% to 7,814 points.

Source: Terra

Rose

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