SHANGHAI: China stocks jumped on Friday and are on course for the best week since last November, after the country’s top leaders pledged in the top Politburo meeting to roll out further policy support to aid economic recovery.
Real estate and financials shares led gains on Friday, after China’s housing minister urged efforts to strengthen sector recovery.
** China’s blue-chip CSI 300 Index rose 1.8% and the Shanghai Composite Index added 1.4%, by the midday recess. Both indexes are set to record the biggest weekly gain since last November.
** The Hang Seng Index gained 0.9% and the Hang Seng China Enterprises Index climbed 1.5%.
** “The relatively dovish tone of the Politburo meeting has improved sentiment, but quick follow-through with stimulus will be key to sustaining the momentum,” Morgan Stanley analysts said in a note.
** China needs more effective implementation measures such as lower home mortgage rates and down-payment ratios for first-time home buyers to help spur home purchases, said Ni Hong, minister of housing and urban-rural development.
** “This confirms an easing direction,” said J.P.Morgan analysts. “Overall, this move is reasonable, and we expect easing could intensify if sales remain weak.”
** The CSI 300 Real Estate Index and the CSI Financials Index soared 3.6% each.
China’s stocks surge as leaders vow to shore up slowing economy
** Foreign investors bought a net 7.1 billion yuan ($992.63 million) of Chinese stocks so far on Friday, sending the weekly net buying to more than 25 billion yuan, set for the biggest weekly inflow since January.
** Tech giants listed in Hong Kong advanced 2.2%, and had gained roughly 8% for the week, amid policy signs of supporting the private sector.
** Shares in most other sectors also rose, with consumer staples, automobiles up 1.5% and 3.8%, respectively.
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