China and Hong Kong Stocks Surge on Policy Hopes
Chinese and Hong Kong stock markets rose as investors shifted focus to sectors likely to benefit from government policy. The Shanghai Composite and CSI300 indices recorded gains, while property stocks outperformed due to anticipated stimulus measures. Economists warn of potential economic challenges ahead.
China and Hong Kong stocks closed on a high note Thursday, amid investor optimism about government policies that are expected to bolster certain sectors. The property sector stood out, outperforming other areas, with the Shanghai Composite index marking a close at 3,509.68, up 0.48%, reaching a remarkable near three and a half year peak.
Hong Kong's benchmark Hang Seng index also reflected positive sentiment, closing up 0.6%, despite technology stocks facing a slight dip. The market's attention remains fixated on potential policy stimulus, spurred by escalating producer deflation in China that reached its worst in nearly two years by June.
Property stocks rallied, partly driven by speculation about a renewal of the shantytown renovation program, with Hong Kong-listed and mainland shares rising notably. Meanwhile, the photovoltaic sector gained as China made moves to address solar overcapacity, while Chinese banks recorded new highs, driven by attractive dividend yields during this economic slowdown.
(With inputs from agencies.)
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