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Chinese stocks higher in easing hopes

Monday, September 03 09:21:37

Hong Kong shares produced their first gain in four days in weak trade today, helped by the property sector after weaker-than-expected economic data spurred hopes that Beijing will act to stem the slowdown in the world's second-largest economy. The Hang Seng Index closed up 0.4 percent at 19,559.2 points. The China Enterprises Index of the top Chinese listings ended up 0.1 percent at 9,287.5.

In the mainland, the CSI300 Index of the top Shanghai and Shenzhen listings rose 1.1 percent. The Shanghai Composite Index climbed 0.6 percent.

Despite the Hang Seng's first gain in four sessions, market players said Monday's gains were mostly led by short covering, suggesting there was little fresh buying with bourse turnover staying lacklustre.

Shares of larger Chinese developers saw bigger gains. China Overseas Land & Investment climbed 3.7 percent, while China Resources Land jumped 4.8 percent. In a report dated Aug. 31, Citi analysts said the toughest period for Chinese developers was over, with recent first-half earnings suggesting a sales recovery was stronger than expected and balance sheets were better managed.

GOME Electrial Appliances rose 3 percent despite posting late on Friday a 501 million yuan ($79 million) first-half loss, hit by costs at its online business and the end of government subsidies on home appliances. The company also said profitability should improve in the second half. ( C) Reuters