HONG KONG, May 17: Chinese share indexes were broadly flat at midday on Friday as strength in property-related sectors on expectations of less stringent curbs offset weakness in mid-sized banking counters, but were still set for a third-straight weekly gain.
The CSI300 of the leading Shanghai and Shenzhen A-share listings ended the morning session flat and is now up 0.4 percent on the week. The Shanghai Composite Index inched up 0.1 percent and is now also up 0.4 percent this week.
Hong Kong markets are closed on Friday for a public holiday and will reopen on Monday. The Hang Seng Index and China Enterprises Index of the top Chinese listings in Hong Kong posted their first weekly loss in four, shedding 0.8 and 2.4 percent, respectively.
China will issue real estate registration rules by the end of June 2014 as part of Beijing’s move to reform its administration system, the official Xinhua news agency reported late on Thursday, citing Hu Cunzhi, the country’s vice minister for land and resources.
Investors took the report as a further sign that Beijing will prioritise reforms for the longer haul over short term policy adjustments.
‘It’s difficult to see more property restrictions given the patchy economic recovery,’ said Cao Xuefeng, Chengdu-based head of research at Huaxi Securities.
‘Small and mid-cap stocks will probably stay popular with the retail investors unless they see signs of substantial institutional buying in the large caps,’ Cao added.
The CSI500 of the leading small- and mid-cap counters gained 0.6 percent and has now jumped 8.6 percent in May, compared to the 4.3 percent gain for the CSI300. Shenzhen’s ChiNext Composite Index is up 1 percent on the day and up 13.7 percent in May.
China Minsheng Bank fell 1.2 percent after closing on Thursday at its highest in Shanghai since March 27 after some of its large shareholders sold off the company’s A-share convertible bonds.
Chinese President Xi Jinping has taken charge of drawing up ambitious reform plans to revitalise the economy, Reuters reported on Friday citing sources close to the government, shunning policy stimulus for fear it could worsen local government debt and inflate property prices.
Shenzhen-listed China Vanke rose another 1.7 percent after Thursday’s 3.4 percent jump. Its shares are now up 17.6 percent on the year to date, compared to the 1.1 percent rise on the CSI300.
(AGENCIES)
Follow our WhatsApp channel