Chinese shares rose more than 1% in trading on Monday, coinciding with the rise in the yuan against the dollar, as well as bank and real estate stocks on the Hong Kong Stock Exchange.
The Shanghai Composite closed today’s session up 1.55% to 3278, the CSI 300 rose 1.04% to 4292 and the Shenzhen Composite rose 1.48% to 2191.
Shares of banks and real estate companies on the Hong Kong Stock Exchange rose after the China Banking and Insurance Regulatory Commission, in its guidance released on Sunday, urged lenders to provide loans for qualified real estate projects and meet the needs of real estate developers in light of the increase the number of homebuyers who refuse to pay their mortgages.
And shares of real estate company Long for Group Holdings rose 4.11% in the session, while shares of Country Garden Holdings, China’s largest construction company, rose 6.36%. Industrial and Commercial Bank of China and China Construction Bank also gained about 3%, supporting the Hang Seng Index’s 2.70% gain to close at 20,846, ending a five-day drop.
The Chinese currency rose 0.31% to 6.7365 yuan against its US counterpart at exactly 12:42 pm Mecca time.
Source: El Iktisad
