Update | Shanghai shares ring up biggest daily gain in a month as investors reposition; Hong Kong stocks up
Property and brokerage companies lead charge in equities
Chinese stocks posted their biggest daily rise in almost a month on Wednesday as investors reposition themselves in anticipation of improved corporate earnings and fundamentals in 2016, while digesting the IMF’s decision to include the yuan into an elite reserve basket.
Hong Kong’s key Hang Seng Index gained 0.44 per cent or 98.34 points to settle at 22,479.69. The H-share Index rose 1.03 per cent, or 102.42 points to 10,050.36, as investors piled in partly on the expectation of more stimulus and easing from the Europe.
The benchmark Shanghai Composite Index was pulled up by 2.33 per cent, or 80.60 points, to close at 3,536.91, the biggest daily rise since November 4. Turnover was at 369.2 billion yuan, slightly up from 332.6 billion yuan on Tuesday.
The CIS300 Index advanced by 3.63 per cent, or 130.26 points, to 3,721.96.
The property sector gave a strong performance for a third day in a row, as investors betting the central government will push out more supportive policies in the annual Central Economic Work Conference getting underway the middle of this month.
Adam Xu, a mutual fund manager based in Shanghai, said “both sentiments and expectations are recovering”, as investors are finding some companies, particularly in the property sector, were doing better than people imagined during the market rout this past June.