SHANGHAI: China and Hong Kong stocks rose on Friday, lifted by property stocks that gained on signs of economic recovery, but concerns over the US presidential election next week and its impact on Sino-US trade and economic policy kept gains in check.

Latest housing data and manufacturing surveys showed that the string of recent stimulus measures have made early impact on economic recovery, investors and analysts said.

China stocks higher as manufacturing activity returns to growth

Apart from the outcome of the Nov. 5 US election, investors said another market focus was the approaching Nov. 4-8 meeting of China’s top legislative body, which is expected to approve more fiscal stimulus measures to aid the economy.

• At the midday break, the Shanghai Composite index was up 0.6% at 3,299.61 points, while the blue-chip CSI300 index was up 0.87%.

• Chinese H-shares listed in Hong Kong, the Hang Seng China Enterprises Index rose 1.82% to 7,396.23 points, while the benchmark Hang Seng Index was up 1.57% at 20,635.73 points.

• The smaller Shenzhen index was down 0.75%, the start-up board ChiNext Composite index was weaker by 0.08% and Shanghai’s tech-focused STAR50 index was down 0.96%.

• Property shares led gains, with the sub-index measuring the sector’s performance rising 1.61% in morning deals.

• Prices of new homes in China rose at a faster pace in October, traditionally a peak season for house hunting, a private survey showed on Friday, suggesting that recent support measures could be having some early impact in a crisis-hit market.

• China’s manufacturing activity swung back to growth in October as an expansion in new orders led to a pick-up in production growth, signalling an improvement in the sector at the start of the final quarter, a private-sector survey showed.

• Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.35% while Japan’s Nikkei index was down 2.30%.