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Real estate stocks help China shares rise on relaxed residency curbs

SHANGHAI: China stocks rose on Thursday, aided by strong gains in real estate firms as Beijing rolled out measures to promote urbanisation.

The CSI300 index rose 0.4 per cent, to 4,007.61, by the end of the morning session, while the Shanghai Composite Index gained 0.4 per cent, to 2,992.41.

China scrapped restrictions on household registration permits for cities under 3 million population, and comprehensively loosened such curbs for cities of 3 to 5 million residents, according to a document issued by the cabinet.

In April, China said it would relax residency curbs in many of its smaller cities this year and increase infrastructure spending.

The CSI300 real estate index rallied 2.7 per cent, led by Jiangsu Zhongnan Construction Group with a gain of 6.2 per cent.

Easing norms for urban residency will promote urbanisation and boost housing demand, said Yuan Hao, an analyst with Huachuang Securities, in a report.

On the trade front, China on Wednesday said both sides’ economic and trade teams were in close communication about detailed arrangements for the phase one deal’s signing and other follow-up work.

Around the region, Japan’s Nikkei index was up 0.45 per cent.

The yuan was quoted at 6.9932 per U.S. dollar, 0.06 per cent weaker than the previous close of 6.989.

The largest percentage gainers in the main Shanghai Composite index were Hylink Digital Solution Co Ltd, up 10.03 per cent, followed by Luoyang Glass Co Ltd, gaining 10.03 per cent, and Inly Media Co Ltd, up by 10.02 per cent.

The largest percentage losers in the Shanghai index were Harbin Gong Da High-Tech Enterprise Development Co Ltd , down 5.19 per cent, followed by Shanghai Zhixin Electric Co Ltd, losing 5.04 per cent, and Shenzhen Geoway Co Ltd , down by 5.03 per cent.

As of 04:03 GMT, China’s A-shares were trading at a premium of 26.26 per cent over the Hong Kong-listed H-shares.

Source: Economic Times