SHANGHAI: China shares rebounded on Thursday, as strong gains in the property sector helped the market recover from sharp losses made a day earlier. At the close, the Shanghai Composite index was up 0.59% at 3,585.05, while the blue-chip CSI300 index was ended 0.59% higher at 5,469.56.
The smaller Shenzhen index ended down 0.63% and the start-up board ChiNext Composite index was weaker by 1.007%. Property shares were among the top gainers after some research notes by local brokerages said the valuation of the real estate sector was at a historically low level. A gauge that tracks the sector jumped 8.17%.
“A notable change on the margins is that onshore household demand for equities has been stronger than our previously bullish outlook, with record onshore mutual fund raising,” said Wendy Liu, head of China strategy at UBS global research, revising up the year-end base case target for blue-chip CSI300 to 6,100 from 5,450 previously.
“This is offsetting the headwind on valuation multiples owing to growth broadening out among listed companies and China’s monetary policies turning more neutral.”
Separately, sentiment was slightly supported by Chinese President Xi Jinping celebrating “complete victory” in the effort to eradicate rural poverty at a ceremony in Beijing on Thursday to mark a signature initiative of his eight-year tenure.
So far this year, the Shanghai stock index is up 3.2% and the CSI300 has risen 5%, while China’s H-share index listed in Hong Kong is up 9.5%. Shanghai stocks have risen 2.93% this month.
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