Dec 6, 2024 at 5:08 am GMT
SHANGHAI (Reuters)- China and Hong Kong stocks climbed to three-week highs on Friday, as investors hoping for fresh stimulus from a key policy meeting next week bet on technology shares in the face of harsher U.S. chip clampdowns.
** The Shanghai Composite Index. SSEC rose 1.2% to its highest levels since mid-November by the lunch break. The blue-chip index CSI 300.CSI300was up 1.6%.
** In Hong Kong, the Hang Seng Index.HSIadvanced 1.4%, hitting the highest level in three weeks.
** Expectations for fresh policy support is building ahead of the Central Economic Work Conference, which will set the agenda and targets for China's economy for 2025.
** China's economic recoveryremains fragile, while U.S. president-elect Donald Trump's tariff threats have added to calls for Beijing to unveil fresh policies to stabilize the struggling economy.
** For the upcoming November economic data, "we expect overall property sales growth to have cooled a bit to a decline of 4% year-on-year and real estate investment to have stayed weak," said Tao Wang, Chief China economist at UBS Investment Bank.
** Fund distributor and advisor Lead Fund said policies from Beijing's conference this month would bolster the stock market, advising investors "to be more optimistic."
** China's outstanding margin financing hit a nine-year high of 1.85 trillion yuan ($254.98 billion) on Thursday, showing investors are making leveraged bets on stocks.
** Tech shares led the gains in China. Sectors including software development.CSI932094, telecom.CSI932140and computer.CSI930651all jumped more than 2%.
** China's ministry of finance publisheddraft ruleson Thursday that would provide incentives for government agencies to buy China-made products, fuelling bets on home-grown technologies.
** The procurement policies would benefit sectors including software, chipmaking and IT and high-end equipment, investment advisor Ju Feng said in a note.
($1 = 7.2555 Chinese yuan renminbi)
Reporting by Shanghai Newsroom; Editing by Varun H K
Sumber : Reuters
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