Mainland China and Hong Kong shares saw an uptick on Monday, primarily due to a rise in gold stocks and positive reactions from investors towards Beijing’s new measures aimed at rescuing the struggling property sector.
Key Points
Beijing’s Measures:
- Announced “historic” steps to stabilise the property sector.
- Central bank to provide 1 trillion yuan ($138.33 billion) in extra funding.
- Eased mortgage rules.
- Local governments to purchase some apartments.
Market Reactions:
- Ting Lu, Chief China Economist at Nomura, expressed optimism about Beijing’s approach but advised patience for more stringent measures.
- Shanghai Composite Index rose by 0.38% to 3,166.08 points at midday.
- China’s blue-chip CSI300 index increased by 0.21%.
Sector Performance:
- Financial sector: up 0.31%.
- Consumer staples: up 0.39%.
- Real estate: up 1.18%.
- Healthcare: down 0.66%.
Hong Kong and Shenzhen Markets:
- Chinese H-shares in Hong Kong: up 0.42% to 6,963.5.
- Hang Seng Index: up 0.49% to 19,650.18.
- Shenzhen index: up 0.17%.
- ChiNext Composite index: up 0.21%.
- STAR50 index: down 0.21%.
Gold Stocks Performance:
- Zijing Mining Group, Shandong Gold Mining, and Zhongjin Gold Corp rose by over 2%.
- CSI non-ferrous metal sub-index gained 2.82%.
Regional Markets:
- MSCI’s Asia ex-Japan stock index rose by 0.32%.
- Japan’s Nikkei index increased by 1.03%.
These movements indicate a cautious optimism in the market, buoyed by strategic interventions in the property sector and a strong performance in the gold sector.
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