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Asia, News

China, HK shares rise as real estate stocks jump on cenbank promise

SHANGHAI, Sept 28 (Reuters) – Chinese shares rose on Tuesday, led by real estate stocks, after the central bank pledged to protect consumers exposed to the housing market, while Hong Kong gained as property and tech shares rebound.

The CSI300 index rose 0.4% to 4,895.83 at the end of the morning session, while the Shanghai Composite Index gained 0.5% to 3,601.66.

The Hang Seng index added 1.5% to 24,561.75. The Hong Kong China Enterprises Index gained 2.0%, to 8,755.32.

** China’s CSI 300 Real Estate Index surged 6.8%, its biggest intraday jump in seven months, as China’s central bank vowed to protect consumers exposed to the housing market on Monday and injected more cash into the banking system.

** The Shenzhen government began investigating the wealth management unit of ailing developer Evergrande, in a clearest sign yet the authorities could move to contain contagion risks. The stock gained 3.5%.

** The banking sub-index rose 2.1% on property rebound.

** The coal sub-index gained 3.3% amid supply crunch, which has led to power cuts across households to industrial sectors in China.

** More compnaies announced their operations have been hit by the widening power curbs, while China’s State Grid Corp pledged to ensure basic power supply and avoid electricity cuts.

** In Hong Kong, the Hang Seng Property Index and the Hang Seng Mainland Properties Index jumped 3.4% and 7.6%, respectivelly.

** Sunac China Holdings Ltd leaped more than 17%, as it clarified reports, saying the group’s construction projects and operations across the country are normal and sales have been good.

** Hang Seng Tech Index added 1.9%, with e-commerce giant Alibaba Group jumping 6%.

** Chinese technology executives, facing a crackdown by the authorities, pledged support on Sunday for Beijing’s “common prosperity” drive and to help smaller companies.

** The energy sub-index was up 3.2%.

(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)

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