SHANGHAI, June 20 — China stocks closed up today even as banks kept their lending benchmarks unchanged, with real estate developers leading the gains as property sales recovered after supportive measures buoyed demand.
The blue-chip CSI300 index rose 0.5 per cent to 4,330.43, while the Shanghai Composite Index was almost unchanged at 3,315.43 points.
The Hang Seng index rose 0.4 per cent to 21,163.91, while the China Enterprises Index gained 0.4 per cent to 7,399.60 points.
China stood pat on its benchmark lending rates for corporate and household loans, as expected, on Monday, with global central banks’ rate increases making it tough for Beijing to stimulate a weak domestic economy by lowering rates.
Meanwhile, US President Joe Biden’s administration is reviewing the removal of some tariffs on China, two top officials said on Sunday.
The CSI300 Real Estate Index gained 3.1 per cent, while the Hang Seng Mainland Properties Index jumped 6.5 per cent.
Nomura said property sales across 30 cities recovered quickly last week, with four top tier cities recording 20 per cent-30 per cent volumes higher than a year ago, and second-tier cities 30 per cent on average.
New energy firms added 1.7 per cent, and tourism rose 3.5 per cent.
However, energy shares tumbled 5.8 per cent, with coal miners down 6.4 per cent. A fire killed one person at a Sinopec Shanghai Petrochemical Co plant in Shanghai on Saturday, sending the company’s shares down 2.4 per cent.
“With the effects of pro-growth policies emerging, expectations of an economic recovery kept rising, elevating the attractiveness of A-shares to global investors,” said Chen Mengjie at Yuekai Securities.
“In the long run, (we) should remain cautious about overseas shocks (mainly recession pressure and debt risks in the second half of this year), while performance of A-shares will eventually depend on domestic fundamentals,” said Guosheng Securities in a note.
Analysts from both brokers said credit expansion would be a key focus in the market for A-shares’ future performance.
Tech giants listed in Hong Kong edged up 0.1 per cent, while NetEase slumped 6.7 per cent as the company delayed the rollout of its video game Diablo Immortal in China three days ahead of its official launch.
Gambling stocks lost 2.3 per cent as the world’s biggest gambling hub Macau began its second day of mass Covid-19 testing today, with banks, schools, government services and other businesses shut, but casinos remaining open. — Reuters
