SHANGHAI, Aug 16 (Reuters) – China shares edged higher on Tuesday, led by gains in property and new energy stocks on policy support, even as worries over COVID flare-ups and slowing economic activities lingered.
The CSI300 index had risen 0.1% by the end of the morning session, while the Shanghai Composite Index was up 0.2%.
The Hang Seng index added 0.1%. The Hong Kong China Enterprises Index gained 0.3%.
** China’s central bank cut key lending rates in a surprise move on Monday as data showed Chinese economic activities and credit expansion slowed sharply in July.
** Analysts now expect banks to cut the Loan Prime Rate next week.
** Other Asian equity markets struggled for direction, weighed down by worries over global growth following weak China data.
** Real estate developers listed in the mainland rose 1.5%, while mainland developers traded in Hong Kong jumped nearly 7%.
** Chinese regulators have instructed state-owned China Bond Insurance Co Ltd to provide guarantees for onshore bond issuance by a few private property developers including Longfor Group and CIFI Holdings, sources said.
** Longfor, CIFI and top developer Country Garden soared between 9% and 14% in Hong Kong.
** In the mainland market, new energy shares added 1.5%, with photovoltaic stocks up 2.5%.
** Analysts say lower lending costs would potentially prolong the rally in growth stocks like new energy shares.
** China’s COVID-19 situation has been worsening over the past week, with the daily local caseload surging to more than 2,000, Nomura said in a note.
** As of Monday, 22 cities in China were implementing full or partial lockdowns or some kind of district-based control measures, affecting 5.6% of population and 8.8% of GDP, according to a Nomura survey. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)