Hong Kong and China stocks jump after government moves to ease property woes

Hong Kong stocks marked their biggest percentage gain in six weeks and Chinese stocks rose after regulators stepped up efforts to encourage lenders to lend to qualified real estate projects after a broad boycott of mortgage payments on unfinished houses.

** Sentiment was also boosted by the country’s central bank governor who pledged to increase the implementation of prudent monetary policy to support the real economy. **The blue-chip CSI300 index rose 1% to 4,292.59 on Monday, while the Shanghai Composite Index gained 1.6% to 3,278.10 points.

** The Hang Seng Index rose 2.7% to 20,846.18, while the Chinese Enterprise Index gained 3% to 7,168.89 points. ** Mainland-listed property developers rose 3.3% and banks added 1.4%, while Mainland-listed property developers jumped 3.7%.

** New home loans in June were expected at more than 150 billion yuan ($22.23 billion), down from a contraction in May, state broadcaster CCTV reported on Monday. **Asian stock markets rose, after a much-needed rebound on Wall Street, although nerves were strained ahead of an almost certain interest rate hike in Europe.

** China’s central bank governor Yi Gang also said China’s economy is facing downward pressure due to COVID-19 and external shocks. ** Meanwhile, state-owned Securities Times said China’s monetary policy has ample room for maneuver and sufficient tools, including a further reduction in bank reserve requirements, to cope. new challenges in a context of fragile economic recovery.

** China’s economy grew only 0.4% in the second quarter compared to the same period last year. While June data showed signs of improvement, analysts do not expect a quick recovery due to the zero COVID policy, a debt-ridden real estate sector and a gloomy global outlook. ** Several major Chinese cities, including Shanghai, are on high alert due to new outbreaks of COVID-19 infections, the rollout of repeated mass testing or extended lockdowns.

** China’s central bank on Monday stepped up liquidity injections through open market operations, offering 12 billion yuan via a seven-day reverse repurchase agreement, ending a 10-day streak of a minimum of 3 billion yuan ($444.61 million) daily supply. ** Financial stocks rose 2% and energy more than 4%.

**Hong Kong-listed tech giants gained 3%, with food delivery giant Meituan up nearly 6%.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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