China markets climbed on Thursday on improved sentiment over favourable government polices, with securities brokerages, property developers and electric vehicle-related stocks leading the gains. The Shanghai Composite Index widened gains in the final stretch of trading, climbing 0.9 per cent to 3,007.35. The benchmark has rallied above the key 3,000-point level five times since June, but has failed to consolidate gains. The Shenzhen Component Index added 0.7 per cent, and the ChiNext Index rose 0.5 per cent. Supportive new policies involving a number of sectors, including real estate, lifted market mood, while China confirmed an initial trade deal with the US was well under way. China and the US are “going through a series of technical steps to sign the trade deal, including ensuring the legality of the document and the accuracy of translation,” Ministry of Commerce spokesman Gao Feng said in a press briefing on Thursday. Stocks Blog: Shanghai Composite once gain ends above 3,000 level The two sides are in close contact on the signing of the deal, he said. Property developers climbed broadly, after Beijing announced it would loosen restrictions for residents of smaller cities to gain residency. The government will drop all requirements for citizens to gain residency in cities with less than 3 million people, and drastically reduce the restrictions for cities with populations between 3 million and 5 million, according to a State Council document published by Xinhua on Thursday. This could be a huge boost to developers, as China’s tight curbs on property prices often function by limiting the number of houses and non-local residents can buy. A gauge of 134 property-related stocks gained 1.6 per cent, according to Wind data. Lushang Health Industry Development and Shanghai Wanye Enterprises jumped by the daily limit of 10 per cent. Chinese securities brokerages also skyrocketed in the last 30 minutes of trading, as investors piled in on speculation the government will cut securities trading tax after the national legislature released the results of a survey that showed respondents were keen on lower securities trading tax. Tax income from securities trading stood at 97.7 billion yuan (US$14 billion) last year, official figures show. Investors were also excited by market talks that the central bank will cut the reserve requirement ratio to inject liquidity into the financial system later this week. China matters to luxury brands – CEOs tell us why Nanjing Securities, based in the eastern province of Jiangsu, led the advance with a 10 per cent jump to 12.71 yuan. The stock has surged by a stunning 66 per cent in the past two weeks on expectations of better earnings this year. A gauge of 47 brokerages jumped 3 per cent. Stocks related to lithium battery soared, as a continuing enthusiasm over electric vehicles (EV) spread to manufacturers of the key car part. A gauge of 124 stocks in Shanghai and Shenzhen gained 1.4 per cent, with eight stocks surging by the daily maximum of 10 per cent, including lithium mining giant Tianqi Lithium. Leading battery maker Contemporary Amperex Technology reached a fresh intraday high of 106.98 yuan. China’s target to boost electric vehicles sales to 25 per cent of overall sales by 2025 earlier this month has lifted investors’ expectations for EV-related stocks, according to a Guosheng Securities report published on Thursday. “Even though the market is not entirely convinced the target will be achieved, the figure gave us an anchor to peg our hopes,” analyst Yao Jian wrote in the report.