China shares have best day in 7 months, volumes spike on easing hopes

China shares have best day in 7 months, volumes spike on easing hopes

HONG KONG - China shares surged in their best day in seven months on Thursday, led by financial and other growth-sensitive sectors after local media reports raised hopes Beijing may launch targetted stimulus measures to boost growth.

The CSI300 of the leading Shanghai and Shenzhen A-share listings ended up 4.6 per cent at 2,326.7 points in its biggest daily gain since Dec. 14. The Shanghai Composite Index jumped 3.2 per cent as volumes surged to the strongest since March 4.

The Shanghai financial sub-index climbed nearly 7 per cent and other sub-indexes for property and material sectors each jumped more than 4 per cent.

Late on Wednesday, the official Xinhua news agency quoted China Premier Li Keqiang pledging policy support to help stabilise growth after a visit to Guangxi province to better grasp economic conditions.

The official China Securities Journal reported on Thursday that authorities may, subject to certain conditions, relax rules on financing for listed-real estate developers, citing unidentified industry players.

With the property sector affecting 40 other industries in the world's second-largest economy, investors interpreted the article as a form of policy easing that lifted other cyclical sectors too.

Ahead of June money supply and loan growth data due by July 15, the official Shanghai Securities News reported that new local currency yuan loans extended by China's big four state-owned banks stood at an unusually large 170 billion yuan (S$35.5 billion) in the first week of July.

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