China stocks close up on strong activity data

** Tech giants listed in Hong Kong added 1.3%, with social media giant Tencent up 2.1%. ** The Hang Seng Mainland Properties Index slumped 2.1%, and the CSI 300 Real Estate Index slipped 0.5%, even as data showed that China's fragile housing market opened this year with slower declines in property investment and sales.


Reuters | Updated: 18-03-2024 13:56 IST | Created: 18-03-2024 13:48 IST
China stocks close up on strong activity data
Representative Image

China stocks closed higher on Monday, boosted by data that showed the country's factory output and retail sales beat expectations in the January-February period, while the securities regulator's latest policy measures also helped.

** China's Shanghai Composite Index jumped 0.9%, and the blue-chip CSI300 Index gained 1% at market close. ** Hong Kong's benchmark Hang Seng edged up 0.1%, and the Hang Seng China Enterprises Index climbed 0.5%.

** Beijing reported industrial output climbed an annual 7% over January and February, while retail sales rose 5.5% on-year. But real estate remained a worry as property investment fell 9% on the year, underlining the case for further policy support. ** Asian shares also firmed as Chinese data surprised on the upside for once, while investors looked to navigate a minefield of central bank meetings this week that could see the end of free money in Japan and a slower glide path for U.S. rate cuts.

** "January-February activity data came in stronger than market expectations," Goldman Sachs said in a note. "We believe China's sequential growth momentum remained solid in Q1 despite notable divergence across sectors. However, to secure the ambitious 'around 5%' growth target this year, more policy easing is still necessary, especially on the demand-side." ** The China Securities Regulatory Commission published a set of rules on Friday that would tighten scrutiny over stock listings, public companies and underwriters, as regulators ramp up efforts to revive investor confidence.

** Shares in information technology, securities brokers and new energy jumped between 2.2% and 2.4%, while automobiles surged 4%. ** Tech giants listed in Hong Kong added 1.3%, with social media giant Tencent up 2.1%.

** The Hang Seng Mainland Properties Index slumped 2.1%, and the CSI 300 Real Estate Index slipped 0.5%, even as data showed that China's fragile housing market opened this year with slower declines in property investment and sales.

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

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