(Updates to midday)
* HSI up 0.5 pct, CSI300 jumps 1.3 pct
* Turnover still lackluster, short covering mostly in HK
* China property strong, Citi says worst over for sector
* Chinese alcohol producers up, price increases eyed
By Clement Tan and Vikram Subhedar
HONG KONG, Sept 3 (Reuters) - Hong Kong and China shares are set for their first gain in four sessions on Monday, helped by the property sector after weaker-than-expected economic data spurred hopes that Beijing will act to stem the slowdown in the world's second-largest economy.
Two complementary surveys showed China's vast manufacturing sector has been badly hit by slowing new orders, suggesting the economic slowdown could extend into a seventh quarter, putting the government's 7.5 percent growth target in danger.
The CSI300 Index of the top Shanghai and Shenzhen listings jumped 1.3 percent at midday, outperforming Asian peers with alcohol producers strong on anticipation of price increases ahead of a week-long October holiday.
The Shanghai Composite Index rose 0.7 percent, while the China Enterprises Index of the top Chinese listings in Hong Kong rose 0.6 percent. The Hang Seng Index rose 0.5 percent.
"A lot of the gains today are on short covering after losses last week, which were quite overdone. Volumes are still bad, so I won't make too much out of what's going on today," said Jackson Wong, Tanrich Securities vice-president for equity sales.
Larger Chinese property developers were among the leading gainers in the mainland. Shenzhen-listed China Vanke rose 3.6 percent, while Shanghai-listed Poly Real Estate jumped 6.2 percent.
In Hong Kong, China Overseas Land & Investment gained 2.3 percent, while China Resources Land firmed 3.2 percent.
In a report dated Aug. 31, Citi analysts said the toughest period for Chinese developers was over, with recent first-half earnings suggesting sales recovery was stronger than expected and balance sheets were better managed.
"Developers are realistic, not trying to anticipate policies but focusing on their own businesses, accelerating asset turnover, and being cautious on land acquisitions and construction commitments," Citi said in same note.
ALCOHOL SECTOR GAINS
Strength in the Chinese alcohol sector also helped power the outperformance of onshore Chinese markets. Wuliangye was the top boost on the CSI300 Index, rising 3.8 percent in Shenzhen.
Trading in shares of premium alcohol producer Kweichow Moutai was suspended on Monday, pending announcement from the company, it said in a filing to the Shanghai stock exchange.
This led to speculation the Moutai could be announcing an increase in product prices ahead of the week-long holiday season in early October, the start of the peak sales period for alcohol producers in China, traders said. (Editing by Richard Pullin)
- Link this
- Share this
- Digg this
- Reprints
No comments:
Post a Comment