SHANGHAI: China stocks closed up on Monday, led by environmental protection stocks on China's measures to achieve carbon neutrality, while property firms fell after a report said the government would roll out a pilot real estate tax in some regions.
The blue-chip CSI300 index rose 0.4% to 4,979.52, while the Shanghai Composite Index gained 0.8% to 3,609.86.
Real estate firms lost 2.7%. The official Xinhua news agency said the State Council, or Cabinet, would determine which regions will be involved in the pilot real estate tax and other details.
"We believe Beijing is determined to quicken the rollout of property tax, but will still proceed in a cautious way and only phase in the tax gradually. So the direct impact in the near term should be quite limited," Nomura said in a note.
Nomura added the indirect impact could be much bigger, as the expectation of ever-rising home prices will likely be significantly reined in among Chinese households, and new home sales across China could slow down.
The environmental protection industry index and the new energy index jumped more than 3% each.
China's cabinet on Sunday outlined measures to achieve its goals of reaching peak carbon emissions by 2030 and carbon neutrality before 2060.
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