China's Stocks Climb Amid Rising Manufacturing and Property Surge

China and Hong Kong stocks rose on renewed manufacturing growth and property gains. The CSI300 and Shanghai Composite Index saw moderate rises, while Hang Seng climbed higher. Market attention shifts to policy insights from the upcoming National People's Congress. Meanwhile, BYD's shares fell despite robust profits amid EU tariff tensions.

In a positive start to November, stocks in China and Hong Kong experienced a modest rally led primarily by the property sector amidst an expansion in the country's manufacturing activity for the first time in half a year. The CSI300 and Shanghai Composite Index showed gains of 0.2% and 0.4% respectively. Additionally, Hong Kong's Hang Seng Index saw a rise of 0.5%.

Economists are cautiously optimistic about China's economic trajectory in the final quarter of the year, as reflected by Pinpoint Asset Management's chief economist Zhiwei Zhang's anticipation of improved economic momentum due to relaxed monetary and fiscal policies. Furthermore, the market is eagerly awaiting insights from next week's National People's Congress Standing Committee meeting and how the outcome of the U.S. elections will influence policy directions.

However, recent moves by Chinese officials, including advising automakers to reconsider investments in Europe amid tariff issues, have added an element of uncertainty. Despite BYD's impressive 11.5% increase in third-quarter net profits, its shares suffered declines across both Chinese and Hong Kong markets, reflecting investor concerns over geopolitical tensions and their impact on China's automotive sector.

(With inputs from agencies.)